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TennesseeHB 1329114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4; Title 67, Chapter 6 and Title 67, Chapter 7, relative to state administration fee on tax collection.

Sponsored By: William Lamberth (Republican)

Became Law

Revenue, Dept. of

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Lower state fee on local taxes

Beginning July 1, 2025, the Department of Revenue keeps 0.75% of locally levied tax collections, down from 1.125%. The Department sends the rest to the county, city, or town that levied the tax. This increases net payments to local governments and lowers the state’s retained share for administration. Tax rates and who owes tax do not change. The rule applies to tax collections received on or after July 1, 2025.

Removes an older local tax rule

Starting July 1, 2025, the law removes subsection (h) in the local sales tax remittance statute. Whatever that subsection required or allowed no longer applies. Any real-world effect depends on what the old text said. The change applies to tax collections received on or after July 1, 2025.

Sponsors & Cosponsors

Sponsor

  • William Lamberth

    Republican • House

Cosponsors

  • Mark Cochran

    Republican • House

  • John Crawford

    Republican • House

  • Clay Doggett

    Republican • House

  • Johnny Garrett

    Republican • House

  • David B. Hawk

    Republican • House

  • Gary Hicks

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 160 • No: 0

Senate vote • 4/14/2025

FLOOR VOTE: Motion to Adopt 4/14/2025

Yes: 32 • No: 0

House vote • 3/24/2025

FLOOR VOTE: CONSENT CALENDAR PASSAGE ON THIRD CONSIDERATION 3/24/2025

Yes: 96 • No: 0

House vote • 3/24/2025

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 3/18/2025

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 21 • No: 0

House vote • 3/5/2025

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 11 • No: 0

Actions Timeline

  1. Pub. Ch. 355

    5/8/2025

  2. Effective date(s) 07/01/2025

    5/8/2025

  3. Signed by Governor.

    5/2/2025

  4. Transmitted to Governor for his action.

    4/21/2025House

  5. Signed by Senate Speaker

    4/17/2025Senate

  6. Enrolled; ready for sig. of H. Speaker.

    4/15/2025House

  7. Signed by H. Speaker

    4/15/2025House

  8. Senate substituted House Bill for companion Senate Bill.

    4/14/2025Senate

  9. Passed Senate, Ayes 32, Nays 0

    4/14/2025Senate

  10. Received from House, Passed on First Consideration

    3/26/2025Senate

  11. Engrossed; ready for transmission to Sen.

    3/25/2025House

  12. Sponsor(s) Added.

    3/24/2025House

  13. Passed H., Ayes 96, Nays 0, PNV 0

    3/24/2025House

  14. H. Placed on Consent Calendar for 3/24/2025

    3/20/2025House

  15. Placed on cal. Calendar & Rules Committee for 3/20/2025

    3/19/2025House

  16. Rec. for pass; ref to Calendar & Rules Committee

    3/18/2025House

  17. Placed on cal. Finance, Ways, and Means Committee for 3/18/2025

    3/12/2025House

  18. Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

    3/5/2025House

  19. Sponsor(s) Added.

    3/3/2025House

  20. Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/5/2025

    2/26/2025House

  21. Sponsor(s) Added.

    2/20/2025House

  22. P2C, ref. to Finance, Ways, and Means Committee

    2/12/2025House

  23. Assigned to s/c Finance, Ways, and Means Subcommittee

    2/12/2025House

  24. Sponsor(s) Added.

    2/10/2025House

  25. Intro., P1C.

    2/10/2025House

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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