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SB2633 • 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
Seal, Farmer
Last action
2026-04-14
Official status
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide details on how long tax distribution will continue for performance venues other than those previously hosting minor league baseball teams.

Changes to Tax Rules for Public Facilities

This bill amends Tennessee tax laws by lowering investment requirements and specifying how sales taxes are distributed for certain facilities.

What This Bill Does

  • Lowers the total public and private investment needed for a facility to be considered 'qualified' from $300 million to $200 million.
  • Requires part of sales and use taxes collected by the state to go to a local entity responsible for paying off debt related to performance venues with at least 2,500 seats that previously hosted minor league baseball teams.

Who It Names or Affects

  • Municipalities and public authorities in Tennessee
  • Businesses involved in tourism development zones

Terms To Know

Qualified Public Use Facility
A facility that meets certain criteria, such as investment levels or seating capacity, to qualify for special tax benefits.
Sales and Use Taxes
Taxes collected on the sale of goods and services in Tennessee.

Limits and Unknowns

  • The exact amount of additional revenue generated by these changes is uncertain due to various factors.
  • This bill does not specify how long the tax distribution will continue for performance venues other than minor league baseball teams.

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, specifically addressing debt retirement for certain stadium renovations.

  • Municipalities or public authorities can now apply sales tax revenues from specific areas for both authorized local uses and those specified by state law.
  • A new provision is added to support the construction or renovation of a performance venue in an adaptive use of a publicly owned stadium, with debt retirement funding coming from certain types of sales and use taxes.
  • The amendment specifies that revenue from educational purposes and increased sales tax rates must not be used for debt retirement as described.
  • Some technical details about the allocation of specific tax revenues are complex and may require further explanation or context to fully understand their impact.

Bill History

  1. 2026-04-14 Tennessee General Assembly

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

  2. 2026-04-14 Tennessee General Assembly

    Received from House, Passed on First Consideration

  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

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

  24. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  25. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government 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 
HOUSE BILL 2496
By Farmer

SENATE BILL 2633
By Seal
SB2633
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.