HB2671 • 2026

Jellico

AN ACT to amend Chapter 91 of the Private Acts of 2008; and any other acts amendatory thereto, relative to a privilege tax on restaurants in the city of Jellico.

Taxes

Active

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

Sponsor: Powers
Last action: 2026-04-16
Official status: Filed for introduction
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how the tax will be enforced or collected beyond stating it must follow existing procedures for other taxes in Jellico.

Jellico Restaurant Tax Act

This act allows Jellico to impose a tax on restaurants selling prepared food if certain conditions are met.

What This Bill Does

Allows the city of Jellico to create a new privilege tax for restaurants selling prepared food, not more than two percent of what customers pay.
Requires Jellico to have a public meeting and get approval from at least two-thirds of its legislative body before setting this tax.
Specifies that the money collected from this tax must be used only to pay back loans taken out by the city for capital outlay purposes.

Who It Names or Affects

Restaurants in Jellico that sell prepared food and have made at least $200,000 in sales over the past year.
Customers who buy food from these restaurants will see a tax added to their bill.

Terms To Know

Privilege Tax: A special kind of tax that is charged for certain activities or purchases, like buying prepared food at a restaurant.
Legislative Body: The group of people who make decisions and laws for the city of Jellico.

Limits and Unknowns

This act only works if two-thirds of Jellico's legislative body agrees to it.
It does not apply to food sold at churches, schools, senior centers, nursing homes, or boarding houses where room and board are included in the price.

Bill History

Date Tennessee General Assembly
2026-04-16 Tennessee General Assembly
Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text

<BillNo> <Sponsor>

HOUSE BILL 2671
By Powers
HB2671
018230
- 1 -

AN ACT to amend Chapter 91 of the Private Acts of 2008; and
any other acts amendatory thereto, relative to a privilege
tax on restaurants in the city of Jellico.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Chapter 91 of the Private Acts of 2008, and any other acts amendatory
thereto, is amended by adding the following as a new article:
ARTICLE VIII
RESTAURANT TAX
SECTION 8.01. Levy of a privilege tax. Until July 1, 2031, the city of Jellico is
authorized, after notice and public hearing, to levy by ordinance adopted by a two-thirds
(2/3) vote of its legislative body, in addition to all other taxes, a privilege tax not to
exceed two percent (2%) of the consideration charged by restaurants located in such
municipality, as defined in the ordinance levying such tax, which restaurants are
engaged in the business of selling prepared food and which restaurants made total sales
to consumers in this state of two hundred thousand dollars ($200,000) or more during
the previous twelve-month period. Adequate public notice of the hearing and the
matters to be discussed, including the proposed imposition of the privilege tax, must be
given by publication in a newspaper of general circulation in the municipality. The public
must have not less than thirty (30) days to comment on the levying of the tax after notice
is published and before the public hearing. The ordinance shall provide for the
collection, payment, administration, and enforcement of such tax in the same manner as
other taxes levied in the municipality and shall further provide for the disbursement of
revenue collected from such tax. Such tax so levied is a privilege tax upon the purchase
of such food. This act shall not apply to food prepared to be served at churches,
schools, senior citizen centers, nursing homes, and at boarding houses where the cost

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of food is included in the rental rate. All proceeds received by the municipality from the
tax shall be used for the payment of debt service incurred by the municipality for capital
outlay purposes.
SECTION 2. If any provision of this act or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions or applications of the
act which can be given effect without the invalid provision or application, and to that end, the
provisions of this act are declared severable.
SECTION 3. This act shall have no effect unless it is approved by a two-thirds (2/3) vote
of the legislative body of the city of Jellico. Its approval or nonapproval shall be proclaimed by
the presiding officer of the legislative body and certified to the Secretary of State.
SECTION 4. For the purpose of approving or rejecting the provisions of this act, it shall
be effective upon becoming a law, the public welfare requiring it. For all other purposes, it shall
become effective upon being approved as provided in Section 3.