Taxes, Sales

Plain English Breakdown

The official source material does not provide specific details on the extent of additional sales tax revenue that will be allocated.

Extending Deadlines for Tax Revenue Allocations in Rural Counties

This bill extends deadlines for counties to apply and receive approval for tax revenue allocations from commercial development districts.

What This Bill Does

• Changes the deadline for counties that border at least three distressed rural counties to apply for sales and use tax revenue allocation from December 31, 2026, to December 31, 2040.
• Extends the date by which the commissioner of finance and administration must approve a commercial development district from June 30, 2031, to June 30, 2041.

Who It Names or Affects

• Counties that border at least three distressed rural counties and are applying for sales and use tax revenue allocation.
• The commissioner of finance and administration who approves applications for commercial development districts.

Terms To Know

Commercial Development District

A designated area in a county where businesses can receive special tax benefits to help economic growth.

Eligible Counties or Municipalities

Counties or cities that meet specific criteria and have applied for tax revenue allocations from the state.

Limits and Unknowns

• The bill does not specify how much additional sales tax revenue will be allocated.
• It is unclear when this bill will become law since it is still active and awaiting further action.

Official Summary Text

Present law authorizes the creation of commercial development districts in rural, economically distressed counties experiencing persistent high unemployment and traditionally low levels of family income, to apportion and distribute sales and use tax reve
nue to address such issues. Eligible counties must submit a completed application to the commissioner of finance and administration ("commissioner"), and then may receive an allocation of sales and use tax revenues.

Present law provides that the tax
revenue allocation
available for properties located in a county that borders at least three distressed, rural counties in at least three fiscal years since FY 2016-2017, and whose governing body passed a resolution or official action prior to January 1, 2021, are available
for eligible counties or municipalities that have filed an application with the commissioner between January 1, 2021, and December 31, 2026. This bill extends that application deadline to December 31, 2
040.

Present law provides that
tax revenue allocation available pursuant to this
allocation program
applies to eligible counties or municipalities located in such eligible counties, or industrial development corporations established by such eligible counties or municipalities, that
have received the approval of a commercial development district from the commissioner on or before June 30, 2031. This bill extends that deadline to June 30, 2041.

Current Bill Text

SENATE BILL 2453
By Bailey

HOUSE BILL 2510
By Sexton
HB2510
010224
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to tax revenue.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-104(m)(1)(C), is amended by
deleting the language "December 31, 2026" and substituting instead the language "December
31, 2040".
SECTION 2. Tennessee Code Annotated, Section 67-6-104(m)(2), is amended by
deleting the language "June 30, 2031" and substituting instead the language "June 30, 2041".
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.