Lottery, Corporation

Plain English Breakdown

The bill does not specify how much money will be collected from this new tax.

Lottery Tax for Tennessee Counties

This bill requires counties in Tennessee to collect a tax on lottery ticket sales and sets rules for how this tax is collected, reported, and distributed.

What This Bill Does

• Requires each county to charge a 5% tax on the sale price of lottery tickets or shares sold within their area.
• Requiring lottery retailers to register with the state's revenue department to collect and pay this tax.
• Setting monthly deadlines for lottery retailers to report sales and pay taxes due.
• Allocating 2% of collected taxes to fund the administration of the new tax system, with the rest going to local governments as per existing laws.
• Allowing the Tennessee education lottery corporation to share information about lottery sales when asked by the revenue department.

Who It Names or Affects

• Counties in Tennessee that sell lottery tickets or shares.
• Lottery retailers who sell lottery products within these counties.
• The state's Department of Revenue, which will manage and enforce this new tax system.

Terms To Know

Commissioner

Refers to the commissioner of revenue in Tennessee.

Lottery retailer

A business that sells lottery tickets or shares.

Limits and Unknowns

• The bill does not specify how much money will be collected from this new tax.
• It is unclear what specific information the Tennessee education lottery corporation must share with the revenue department.
• The exact rules for implementing and collecting taxes under this act have yet to be determined.

Official Summary Text

COLLECTION
OF COUNTY ENTERTAINMENT TAX

For the exercise of the privilege of engaging in the business of selling lottery tickets or shares in this state pursuant to education lottery implementation law, this bill requires each county to levy a tax at the rate of 5%
of the sales price of lottery tickets or shares when sold at retail within the jurisdiction of the county, which is in addition to all other taxes imposed on a lottery retailer. Each lottery retailer must register with the department of revenue ("depart
m
ent") for the collection and remittance of the tax levied.

REMITTANCE OF COUNTY ENTERTAINMENT TAX

This bill provides that the tax described above is due and payable monthly on the first day of each month, and for the purpose of ascertaining the amount o
f tax payable under this bill, all lottery retailers making taxable sales on or before the 20th day of each month must transmit to the commissioner of revenue ("commissioner"), upon forms prescribed by the commissioner, returns showing gross sales during
t
he preceding month.

DISTRIBUTION OF COUNTY ENTERTAINMENT TAX

Of the taxes received by the commissioner under this bill, this bill requires 2% be allocated to the department for administration of this bill. The remaining taxes must be distributed in the
same manner as provided under the Local Option Revenue Act.

INFORMATION SHARING

Upon request, this bill requires the Tennessee education lottery corporation to provide information to the department concerning lottery sales made by lottery retailers for
the sole purpose of administering or collecting the tax imposed pursuant to this bill.

RULEMAKING

This bill authorizes the department to promulgate rules for the implementation of this bill and the collection of tax revenues under this bill.

Current Bill Text

HOUSE BILL 51
By Keisling

SENATE BILL 762
By Yager

SB0762
000861
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 9; Title 49 and Title 67,
relative to lottery tickets.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 67, Chapter 4, is amended by adding
the following as a new part:
67-4-2301. Part definitions.
As used in this part:
(1) "Commissioner" means the commissioner of revenue;
(2) "Department" means the department of revenue;
(3) "Lottery," "lottery game," and "lottery retailer" have the same
meanings as defined in § 4-51-102;
(4) "Lottery ticket" means tangible evidence issued by the lottery to
provide participation in a lottery game; and
(5) "Share" means intangible evidence of participation in a lottery game.
67-4-2302. County entertainment tax — Rate.
For the exercise of the privilege of engaging in the business of selling lottery
tickets or shares in this state pursuant to title 4, chapter 51, each county shall levy a tax
at the rate of five percent (5%) of the sales price of lottery tickets or shares when sold at
retail within the jurisdiction of the county. This tax is in addition to all other taxes
imposed on a lottery retailer.
67-4-2303. Collection.
The commissioner shall collect and administer the tax levied by this part.

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67-4-2304. Registration.
Each lottery retailer shall register with the department for the collection and
remittance of the tax levied pursuant to this part.
67-4-2305. Remittance.
The tax levied under this part is due and payable monthly on the first day of each
month, and for the purpose of ascertaining the amount of tax payable under this part, all
lottery retailers making taxable sales on or before the twentieth day of each month shall
transmit to the commissioner, upon forms prescribed by the commissioner, returns
showing gross sales during the preceding month.
67-4-2306. Distribution.
Of the taxes received by the commissioner under this part, two percent (2%)
must be allocated to the department for administration of this part. The remaining taxes
must be distributed in the same manner as provided in § 67-6-712.
67-4-2307. Information sharing.
Upon request, the Tennessee education lottery corporation shall provide
information to the department concerning lottery sales made by lottery retailers for the
sole purpose of administering or collecting the tax imposed pursuant to this part.
67-4-2308. Rulemaking.
The department may promulgate rules in accordance with the Uniform
Administrative Procedures Act, compiled in title 4, chapter 5, for the implementation of
this part and the collection of tax revenues under this part.
SECTION 2. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.

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SECTION 3. For the purpose of promulgating rules and forms, this act takes effect upon
becoming a law, the public welfare requiring it. For all other purposes, this act takes effect
January 1, 2026, the public welfare requiring it.