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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: Sponsor information unavailable

Signed by Governor

Taxes

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 5 costs, 1 mixed.

Gas users face fewer permit renewals

The Commissioner issues a liquefied gas user permit after a proper application on the required form. The permit stays valid without renewal while reports and tax payments are on time. It ends if surrendered or canceled by the Commissioner. Customers need no user permit for compressed natural gas or hydrogen delivered into vehicle tanks through qualified, metered dispensers.

Gas users get credits and refunds

Liquefied gas users can subtract tax paid to a dealer from the gas tax they otherwise owe. Users must file the required reports and pay the tax. They can also recover tax paid on each gallon used outside Tennessee. Refunds require a complete, timely report verified by the Commissioner and must total at least $10. Late reports receive no refund.

Drivers pay gas tax when fueling

Liquefied gas tax is due when fuel enters a vehicle required to be licensed for Tennessee public-highway use. This includes vehicles that also use another motor fuel. The delivering dealer is liable for reporting and paying the tax to the state.

Tax dispute attachments belong with complaints

The law changes a tax-dispute attachment requirement from attachment to the notice to attachment to the complaint. This changes which filing carries the required attachment. The act took effect upon becoming law.

Commercial gas users face July deadline

Permitted users operating vehicles for business must report and pay liquefied gas tax if they do not pay a dealer. The annual deadline is July 25. The report covers the preceding July 1 through June 30.

Compensated sellers get updated tax terminology

One sales tax section now uses “CSP-compensated seller” instead of “volunteer seller” or “voluntary sellers.” The supplied text does not explain any resulting change in tax bills or seller liability.

Hydrogen fuel enters dealer tax rules

The law adds hydrogen to the specified gas-tax rules, including dealer permits and related coupon requirements. Dealer permits authorize tax collection and payment on compressed natural gas or hydrogen delivered through qualified vehicle-fuel dispensers. For tax measurement, one gallon-equivalent equals 5.66 pounds of compressed natural gas or 2.20 pounds of hydrogen. Covered meters and gas dispensers are subject to inspection and verification by Tennessee Agriculture weights and measures officials.

Phone tax rules define covered customers

For phone-service tax sourcing—deciding where a sale is taxed—the customer is generally the person or business buying service. When someone else uses the service, that end user counts as the customer for sourcing. Resellers are excluded, along with specified carrier arrangements for mobile service outside the home provider’s licensed area. The law also adds definitions for services such as air-to-ground calls and post-paid calling, and updates related references.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 39 • No: 0

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

  1. Effective date(s) 04/01/2026

    4/6/2026

  2. Pub. Ch. 653

    4/6/2026

  3. Signed by Governor.

    4/1/2026Senate

  4. Transmitted to Governor for action.

    3/20/2026Senate

  5. Signed by H. Speaker

    3/19/2026House

  6. Signed by Senate Speaker

    3/18/2026Senate

  7. Enrolled and ready for signatures

    3/17/2026Senate

  8. Passed H., Ayes 94, Nays 0, PNV 0

    3/16/2026House

  9. Subst. for comp. HB.

    3/16/2026House

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

    3/12/2026House

  11. Engrossed; ready for transmission to House

    3/9/2026Senate

  12. Passed Senate, Ayes 32, Nays 0

    3/9/2026Senate

  13. Placed on Senate Consent Calendar 2 for 3/9/2026

    3/6/2026Senate

  14. Recommended for passage, refer to Senate Calendar Committee

    3/4/2026Senate

  15. Placed on Senate Transportation and Safety Committee calendar for 3/4/2026

    2/25/2026Senate

  16. Passed on Second Consideration, refer to Senate Transportation and Safety Committee

    2/2/2026Senate

  17. Introduced, Passed on First Consideration

    1/22/2026Senate

  18. Filed for introduction

    1/21/2026Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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