KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Tennessee

HB2496 • 2026

Taxes

AN ACT to amend Tennessee Code Annotated, Title 7 and Title 67, relative to taxation.

Children Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Farmer, Seal
Last action
2026-04-14
Official status
Received from House, Passed on First Consideration
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about the definition changes for 'qualified public use facility' beyond investment requirements.

Tennessee Tax Changes for Public Facilities

This bill amends tax rules to lower investment requirements and allow sales tax revenue distribution for certain public facilities.

What This Bill Does

  • Reduces the required total investment for a project to qualify as a 'qualified public use facility' from $300 million to $200 million.
  • Allows municipalities to distribute sales and use tax revenue to help pay off debts related to performance venues with seating capacity of at least 2,500 that previously hosted minor league baseball teams.

Who It Names or Affects

  • Municipalities in Tennessee
  • Public authorities responsible for financing public facilities

Terms To Know

Qualified Public Use Facility
A mixed-use development that includes a performance venue and meets certain investment requirements.
Sales Tax Revenue Distribution
The process of allocating sales tax money to help pay off debts related to public facilities.

Limits and Unknowns

  • This act does not specify how long the distribution of sales and use taxes will continue, but it is limited to either until the debt is retired or after 30 years, whichever is sooner.
  • The exact amount of additional revenue for Sevierville cannot be predicted due to multiple variables.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2496

Plain English: The amendment allows municipalities to use sales tax revenues for various purposes and specifies how incremental tax revenue from certain performance venues should be used to retire debt.

  • Municipalities or public authorities can now apply sales tax revenues for authorized uses under both Title 7 and Title 67 of the Tennessee Code Annotated.
  • A new subsection is added to Section 67-4-3002, defining a mixed-use development that includes specific criteria such as sports facilities with ten or more fields or performance venues with at least 2,500 seats.
  • Section 67-6-103 is amended to specify how incremental tax revenue from certain performance venues should be used for debt retirement.
  • The amendment text does not provide details on the exact implementation or operational procedures for applying sales tax revenues, which may require further clarification.
  • Some parts of the amendment are incomplete (e.g., missing subsection number in Section 67-6-103), making it difficult to fully understand all intended changes.
Amendment 2-0 to HB2496

Plain English: The amendment allows municipalities to use sales tax revenues for various purposes related to tourism and performance venues, and specifies how certain tax revenues must be used to pay off debt for specific projects.

  • Municipalities or public authorities can now apply sales tax revenues from their area for both local and state-authorized purposes.
  • A new provision is added to allocate sales tax revenue specifically for the construction or renovation of performance venues in publicly owned stadiums that previously housed minor league baseball teams, with these funds going towards paying off related debt.
  • The amendment excludes certain educational funding increases from being used to pay off venue-related debts.
  • Some parts of the amendment text are technical and may require further explanation for full understanding.

Bill History

  1. 2026-04-14 Tennessee General Assembly

    Received from House, Passed on First Consideration

  2. 2026-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026

  3. 2026-04-13 Tennessee General Assembly

    Engrossed; ready for transmission to Sen.

  4. 2026-04-13 Tennessee General Assembly

    Sponsor(s) Added.

  5. 2026-04-13 Tennessee General Assembly

    Passed H., as am., Ayes 80, Nays 11, PNV 3

  6. 2026-04-13 Tennessee General Assembly

    H. adopted am. (Amendment 2 - HA1063)

  7. 2026-04-13 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0740)

  8. 2026-04-09 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/13/2026

  9. 2026-04-08 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/9/2026

  10. 2026-04-07 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  11. 2026-04-01 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/7/2026

  12. 2026-04-01 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  13. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  14. 2026-03-19 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  15. 2026-03-18 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  16. 2026-03-17 Tennessee General Assembly

    Refer to Senate F,W&M Committee w/ positive recommendation, as amended

  17. 2026-03-11 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/18/2026

  18. 2026-03-11 Tennessee General Assembly

    Rec for pass if am by s/c ref. to State & Local Government Committee

  19. 2026-03-11 Tennessee General Assembly

    Sponsor(s) Added.

  20. 2026-03-10 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/17/2026

  21. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026

  22. 2026-02-24 Tennessee General Assembly

    Refer to Senate F,W&M Revenue Subcommittee

  23. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  24. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  25. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  26. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  27. 2026-02-03 Tennessee General Assembly

    Filed for introduction

  28. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  29. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON APRIL 13, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 2496, AS AMENDED.

AMENDMENT #2 makes the following changes:



Lowers the requires total public and private investment to meet the definition of "qualified public use facility" from $300 million to $200 million.


Requires a
portion of the sales and use taxes received by the commissioner of revenue to be distributed to a public entity designated by the municipality that is responsible for the retirement of all or a portion of the original debt relating to a performance venue with a seating capacity of at least 2,500 that previously was leased to a minor league baseball team. Such distribution must be equal to the amount of any incremental state and local sales and use tax revenue from the sale of food, drink, and other authorized goods or products, ticket sales, and parking charges that occur on the premises on which the performance venue is located. The apportionment must continue until the debt is retired, or after 30 years, whichever is sooner. However, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes or revenue derived from the increase in the rate of sales and use tax from 6% to 7% must be apportioned pursuant to this amendment.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2633
By Seal

HOUSE BILL 2496
By Farmer
HB2496
012496
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 7 and
Title 67, relative to taxation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-88-114, is amended by adding the
following as a new subsection:
(h) If a municipality or public authority is entitled to receive an allocation of sales
tax revenues pursuant to this chapter and pursuant to § 67-6-103, then the municipality
or public authority may apply such sales tax revenues from the applicable area for the
purposes authorized under this chapter or for the purposes authorized by § 67-6-103, as
determined by the municipality or public authority.
SECTION 2. Tennessee Code Annotated, Section 67-4-3002, is amended by deleting
subdivision (7)(D) and substituting instead:
(D) A mixed-use development initially including a sports facility containing ten
(10) or more sports fields or a performance venue with a seating capacity of at least two
thousand five hundred (2,500), including any retail, office, hotel, apartment,
condominium, and other commercial or residential uses, and for which any portion was
located in a tourism development zone when certified, that is expected by the
municipality to require a total public and private capital investment of three hundred
million dollars ($300,000,000) or more;
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.