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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: Richard Briggs (Republican)

Became Law

Taxes, Hotel Motel

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Bill Overview

Analyzed Economic Effects

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

Marketplaces must collect short-term rental tax

Beginning July 1, 2025, when a short-term rental booking is made through a marketplace, the marketplace must collect and send the occupancy tax under state rules. This applies to taxes created by private acts. Hosts do not remit this tax themselves for those marketplace bookings. Marketplaces take on the collection and remittance duties.

Cities must spend room taxes on tourism

Cities that charge an occupancy tax must use the money for tourism promotion and tourism development, including debt and contracts. They cannot use it for general government work unless the city and the destination marketing entity sign a written agreement. Cities that levied the tax before May 1, 2025 may keep using the money as their original local law allows, subject to state law. Each year, a report is due within 90 days after the fiscal year ends showing how the city and its contractors spent the funds. If an audit finds non-tourism spending, the city must replace that amount from its general fund the next year. A city may also require that marketplace-collected short-term rental tax money it receives be used for tourism. The law defines tourism development, tourism promotion, and a “tourist” (travels more than 50 miles) to guide these rules.

New caps on city hotel taxes

The law caps a city’s hotel occupancy tax at 4% of the room price. Going forward, the total local hotel tax in an incorporated area cannot be more than 8%. Any hotel occupancy taxes that were levied or authorized before May 1, 2025 and are above these caps stay in effect. This limits new increases but keeps some older higher rates.

Sponsors & Cosponsors

Sponsor

  • Richard Briggs

    Republican • Senate

Cosponsors

  • Janice Bowling

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 119 • No: 2

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

  1. Pub. Ch. 372

    5/13/2025

  2. Effective date(s) 05/05/2025

    5/13/2025

  3. Signed by Governor.

    5/5/2025Senate

  4. Transmitted to Governor for action.

    4/23/2025Senate

  5. Enrolled and ready for signatures

    4/22/2025Senate

  6. Signed by Senate Speaker

    4/22/2025Senate

  7. Signed by H. Speaker

    4/22/2025House

  8. Subst. for comp. HB.

    4/16/2025House

  9. Am. withdrawn. (Amendment 1 - HA0390)

    4/16/2025House

  10. Passed H., Ayes 82, Nays 2, PNV 7

    4/16/2025House

  11. Rcvd. from S., held on H. desk.

    4/14/2025House

  12. Senate adopted Amendment (Amendment 1 - SA0298)

    4/10/2025Senate

  13. Passed Senate as amended, Ayes 30, Nays 0, PNV 2

    4/10/2025Senate

  14. Engrossed; ready for transmission to House

    4/10/2025Senate

  15. Sponsor(s) Added.

    4/10/2025Senate

  16. Placed on Senate Regular Calendar for 4/10/2025

    4/8/2025Senate

  17. Recalled from Senate Finance, Ways & Means Committee

    4/7/2025Senate

  18. Refer to Senate Calendar Committee

    4/7/2025Senate

  19. Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 7, Nays 0 PNV 0

    4/1/2025Senate

  20. Placed on Senate State and Local Government Committee calendar for 4/1/2025

    3/26/2025Senate

  21. Action deferred in Senate State and Local Government Committee to 4/1/2025

    3/25/2025Senate

  22. Placed on Senate State and Local Government Committee calendar for 3/25/2025

    3/19/2025Senate

  23. Action deferred in Senate State and Local Government Committee to 3/25/2025

    3/18/2025Senate

  24. Placed on Senate State and Local Government Committee calendar for 3/18/2025

    3/11/2025Senate

  25. Passed on Second Consideration, refer to Senate State and Local Government Committee

    2/12/2025Senate

Bill Text

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