All Roll Calls
Yes: 119 • No: 2
TennesseeSB 0629114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 7 and Title 67, relative to occupancy tax.
Sponsored By: Sponsor information unavailable
Signed by Governor
Taxes, Hotel Motel
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
Towns face limits on hotel taxes
The law generally caps a town's hotel occupancy tax at 4% of the amount charged to a guest. Beginning when the law took effect, towns cannot raise the tax so combined occupancy taxes in an incorporated county area exceed 8%. Higher taxes levied or authorized before May 1, 2025, remain allowed, subject to Tennessee Code § 67-4-1414. These limits do not guarantee travelers a tax cut.
Towns must report and replace misused taxes
Towns must file an annual spending report with the Department of Tourist Development commissioner within 90 days after their fiscal year ends. Reports must explain tourism spending, including spending by contractors and subcontractors. An audit by the Comptroller, or a town-employed contractor approved by the Comptroller, can find covered tax money was improperly spent outside tourism purposes. The town must then provide an equal amount from general funds for tourism promotion and development in the next fiscal year.
New tax rules for marketplace rentals
Beginning July 1, 2025, private-act occupancy taxes on marketplace-booked short-term rentals must follow Tennessee's statewide collection and payment rules. This collection change does not set a new tax rate. Towns can adopt an ordinance or resolution directing rental-tax funds received from the Department of Revenue toward tourism. That option covers marketplace rental-tax receipts distributed under Tennessee Code § 67-4-1506 and applies the law's tourism-spending rules.
Towns direct lodging taxes toward tourism
Towns must use covered lodging-tax money for tourism promotion and development, including related debt payments and contracts. Promotion covers information, publicity, and advertising programs that attract tourists and support tourism business; tourists travel more than 50 miles for business or leisure. Development means creating or expanding public attractions, facilities, or events that improve tourist appeal and experiences, primarily promoted to or used by tourists. General government spending from tourism-development money needs a written agreement between the town's governing body and its designated tourism marketing group. Towns that levied the tax before May 1, 2025, can keep following the spending rules in their existing private act, resolution, or ordinance.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Janice Bowling
Republican • Senate
Roll Call Votes
House vote • 4/16/2025
FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 82 • No: 2
Senate vote • 4/10/2025
FLOOR VOTE: as Amended Third Consideration 4/10/2025
Yes: 30 • No: 0
Senate vote • 4/1/2025
SENATE STATE & LOCAL GOVERNMENT COMMITTEE
Yes: 7 • No: 0
Actions Timeline
Effective date(s) 05/05/2025
5/13/2025Pub. Ch. 372
5/13/2025Signed by Governor.
5/5/2025SenateTransmitted to Governor for action.
4/23/2025SenateSigned by H. Speaker
4/22/2025HouseSigned by Senate Speaker
4/22/2025SenateEnrolled and ready for signatures
4/22/2025SenatePassed H., Ayes 82, Nays 2, PNV 7
4/16/2025HouseAm. withdrawn. (Amendment 1 - HA0390)
4/16/2025HouseSubst. for comp. HB.
4/16/2025HouseRcvd. from S., held on H. desk.
4/14/2025HouseSponsor(s) Added.
4/10/2025SenateEngrossed; ready for transmission to House
4/10/2025SenatePassed Senate as amended, Ayes 30, Nays 0, PNV 2
4/10/2025SenateSenate adopted Amendment (Amendment 1 - SA0298)
4/10/2025SenatePlaced on Senate Regular Calendar for 4/10/2025
4/8/2025SenateRefer to Senate Calendar Committee
4/7/2025SenateRecalled from Senate Finance, Ways & Means Committee
4/7/2025SenateRecommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 7, Nays 0 PNV 0
4/1/2025SenatePlaced on Senate State and Local Government Committee calendar for 4/1/2025
3/26/2025SenateAction deferred in Senate State and Local Government Committee to 4/1/2025
3/25/2025SenatePlaced on Senate State and Local Government Committee calendar for 3/25/2025
3/19/2025SenateAction deferred in Senate State and Local Government Committee to 3/25/2025
3/18/2025SenatePlaced on Senate State and Local Government Committee calendar for 3/18/2025
3/11/2025SenatePassed on Second Consideration, refer to Senate State and Local Government Committee
2/12/2025Senate
Bill Text
Enrolled / Public Chapter
Fiscal Note
HA0390
Introduced
SA0298
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