All Roll Calls
Yes: 39 • No: 0
TennesseeSB 1875114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 1, Part 18; Title 67, Chapter 3, Part 11 and Title 67, Chapter 6, relative to taxation.
Sponsored By: Jack Johnson (Republican)
Became Law
Taxes
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 1 benefits, 2 costs, 5 mixed.
Refunds and deductions for fuel users
If you already paid liquified gas tax to a dealer, you can deduct that same amount from your own tax due. If you file on time, you can get a refund for tax paid on gallons used outside Tennessee. The state pays refunds only when at least $10.00 is due. Your user permit stays valid as long as you file reports and pay on time, unless you surrender it or it is canceled.
Dealers must collect liquified fuel tax
Dealers who pump liquified gas into a vehicle’s tank are liable for the fuel tax. A dealer permit lets the dealer collect and send in the tax. When a dealer pumps compressed natural gas or hydrogen through a qualified dispenser, no separate user permit is needed. The state can inspect meters and natural gas or hydrogen dispensers for accuracy. For Tennessee‑licensed vehicles, the tax is due at the time of delivery into the tank, so dealers collect it at the pump.
New telecom tax definitions and sourcing
The law adds new telecom service definitions and updates who counts as the customer and end user. It clarifies where telecom sales are taxed and who must collect the tax. Companies may need to update billing systems and sourcing rules.
Annual filing for commercial fuel users
If you operate a vehicle for business and do not pay the liquified gas tax to a dealer, you must file a yearly report. The report is due by July 25 and covers July 1 through June 30. You must also pay any tax you owe with the filing.
Tax cases attach documents to complaints
In tax enforcement cases, the required document must be attached to the complaint, not the notice. This changes how papers are served in tax disputes and collections.
Hydrogen fuel taxed like natural gas
The law adds hydrogen to the same fuel‑tax rules that apply to compressed natural gas. It sets how to count taxable gallons by weight: 5.66 pounds equals one gallon for CNG, and 2.2 pounds equals one gallon for hydrogen. These rules decide how much tax is charged on hydrogen and CNG used in vehicles.
Law takes effect immediately
All changes in this act take effect when it becomes law. There is no delayed start date.
Edits to liquified gas tax rules
The state deletes the last sentence in two liquified gas sections and removes one subsection. These edits align the text with the new rules. The bill text does not restate the removed language.
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Sponsors & Cosponsors
Sponsor
Jack Johnson
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/9/2026
FLOOR VOTE: Motion to Adopt 3/9/2026
Yes: 32 • No: 0
Senate vote • 3/4/2026
TRANSPORTATION AND SAFETY COMMITTEE
Yes: 7 • No: 0
Actions Timeline
Pub. Ch. 653
4/6/2026Effective date(s) 04/01/2026
4/6/2026Signed by Governor.
4/1/2026SenateTransmitted to Governor for action.
3/20/2026SenateSigned by H. Speaker
3/19/2026HouseSigned by Senate Speaker
3/18/2026SenateEnrolled and ready for signatures
3/17/2026SenateSubst. for comp. HB.
3/16/2026HousePassed H., Ayes 94, Nays 0, PNV 0
3/16/2026HouseRcvd. from S., held on H. desk.
3/12/2026HousePassed Senate, Ayes 32, Nays 0
3/9/2026SenateEngrossed; ready for transmission to House
3/9/2026SenatePlaced on Senate Consent Calendar 2 for 3/9/2026
3/6/2026SenateRecommended for passage, refer to Senate Calendar Committee
3/4/2026SenatePlaced on Senate Transportation and Safety Committee calendar for 3/4/2026
2/25/2026SenatePassed on Second Consideration, refer to Senate Transportation and Safety Committee
2/2/2026SenateIntroduced, Passed on First Consideration
1/22/2026SenateFiled for introduction
1/21/2026Senate
Bill Text
Enrolled / Public Chapter
Fiscal Note
Introduced
Related Bills
SB 1612 — AN ACT to amend Tennessee Code Annotated, Title 4 and Title 8, relative to state employees.
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