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TennesseeHB 2502114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 4; Title 38; Title 39; Title 45; Title 47; Title 49 and Title 67, relative to money transmission.

Sponsored By: Cameron Sexton (Republican)

Signed by Governor

Banks and Financial Institutions

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Bill Overview

Analyzed Economic Effects

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

International transfers taxed, but no local tax

Beginning January 1, 2027, transfers from Tennessee to locations outside the United States or its territories face a new tax. It applies to services provided by money transmitters licensed under Tennessee’s Money Transmission Modernization Act. The tax is $10 per transfer, plus 2% of the amount above $500; no local option tax applies. Financial-institution corporations are exempt unless licensed under that Act. For in-person requests, the transfer starts where the customer makes the request in Tennessee. For online or phone requests, the transmitter determines the customer’s Tennessee location using customer information and records, including addresses. Transmitters can also use recipient information and records to determine whether the destination is outside the country or its territories. The service is assigned to its Tennessee starting location for tax purposes. The law takes effect upon becoming law for rulemaking purposes.

Transfer taxes fund hospitals and family services

Beginning January 1, 2027, Tennessee divides the new transfer-tax revenue each month among five uses. The state general fund gets 20%. The TennCare Buyback Fund gets 51.5% for hospital buybacks, with deposits into the hospital trust fund allowed as needed. The Promising Futures Fund gets 18.5%, managed by the Department of Human Services, for child care pilots and targeted help. Its uses include stabilizing the child care workforce, employer-supported shared care, and access for working families who miss subsidy eligibility. It also supports data-based evaluation of those efforts. The Tennessee Housing Development Agency gets 5% for workforce housing. The Department of Education’s Teacher Internship Fund gets 5% for paid teacher-training internships in public schools, including charter schools. Money in the special accounts stays there until spent and does not return to the general fund. The law does not set a total funding amount.

Sponsors & Cosponsors

Sponsor

  • Cameron Sexton

    Republican • House

Cosponsors

  • Rush Bricken

    Republican • House

  • Mark Cochran

    Republican • House

  • Elaine Davis

    Republican • House

  • Timothy Hill

    Republican • House

  • Dan Howell

    Republican • House

  • Bryan Terry

    Republican • House

  • Ryan Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 281 • No: 76

House vote • 4/22/2026

FLOOR VOTE: MESSAGE CALENDAR CONCUR IN SENATE AMENDMENT # 2 4/22/2026

Yes: 70 • No: 19

Senate vote • 4/16/2026

FLOOR VOTE: as Amended Third Consideration 4/16/2026

Yes: 21 • No: 7

House vote • 4/9/2026

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 4/9/2026

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/9/2026

Yes: 68 • No: 21

House vote • 4/9/2026

FLOOR VOTE: REGULAR CALENDAR PREVIOUS QUESTION AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/9/2026

Yes: 65 • No: 24

House vote • 3/31/2026

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 22 • No: 0

House vote • 3/25/2026

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 12 • No: 0

House vote • 3/18/2026

HOUSE COMMERCE COMMITTEE

Yes: 17 • No: 4

House vote • 3/11/2026

HOUSE BANKING AND CONSUMER AFFAIRS SUBCOMMITTEE

Yes: 6 • No: 1

Actions Timeline

  1. Effective date(s) 05/21/2026, 01/01/2027

    5/27/2026

  2. Pub. Ch. 1035

    5/27/2026

  3. Signed by Governor.

    5/21/2026

  4. Transmitted to Governor for his action.

    5/11/2026House

  5. Signed by Senate Speaker

    5/5/2026Senate

  6. Signed by H. Speaker

    4/30/2026House

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

    4/28/2026House

  8. H. concurred in S. am. no. 2 Ayes 70, Nays 19 PNV 2 HB2502

    4/22/2026House

  9. H. Placed on Message Calendar for 4/21/2026

    4/20/2026House

  10. Passed Senate as amended, Ayes 21, Nays 7

    4/16/2026Senate

  11. Senate adopted Amendment (Amendment 2 - SA1038)

    4/16/2026Senate

  12. Amendment withdrawn. (Amendment 1 - SA1013)

    4/16/2026Senate

  13. Senate substituted House Bill for companion Senate Bill.

    4/16/2026Senate

  14. Received from House, Passed on First Consideration

    4/13/2026Senate

  15. Engrossed; ready for transmission to Sen.

    4/9/2026House

  16. Passed H., as am., Ayes 68, Nays 21, PNV 3

    4/9/2026House

  17. Sponsor(s) Added.

    4/9/2026House

  18. H. adopted am. (Amendment 1 - HA0729)

    4/9/2026House

  19. H. Placed on Regular Calendar for 4/9/2026

    4/2/2026House

  20. Placed on cal. Calendar & Rules Committee for 4/2/2026

    4/1/2026House

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

    3/31/2026House

  22. Placed on cal. Finance, Ways, and Means Committee for 3/31/2026

    3/25/2026House

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

    3/25/2026House

  24. Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/25/2026

    3/18/2026House

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

    3/18/2026House

Bill Text

  • HA0729 (Substitute)

    4/9/2026

    PDF

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

  • SA1013

    PDF

  • SA1038

    PDF

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