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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: Jack Johnson (Republican)

Became Law

Taxes

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Bill Overview

Analyzed Economic Effects

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

Refunds and deductions for fuel users

If you already paid liquified gas tax to a dealer, you can deduct that same amount from your own tax due. If you file on time, you can get a refund for tax paid on gallons used outside Tennessee. The state pays refunds only when at least $10.00 is due. Your user permit stays valid as long as you file reports and pay on time, unless you surrender it or it is canceled.

Dealers must collect liquified fuel tax

Dealers who pump liquified gas into a vehicle’s tank are liable for the fuel tax. A dealer permit lets the dealer collect and send in the tax. When a dealer pumps compressed natural gas or hydrogen through a qualified dispenser, no separate user permit is needed. The state can inspect meters and natural gas or hydrogen dispensers for accuracy. For Tennessee‑licensed vehicles, the tax is due at the time of delivery into the tank, so dealers collect it at the pump.

New telecom tax definitions and sourcing

The law adds new telecom service definitions and updates who counts as the customer and end user. It clarifies where telecom sales are taxed and who must collect the tax. Companies may need to update billing systems and sourcing rules.

Annual filing for commercial fuel users

If you operate a vehicle for business and do not pay the liquified gas tax to a dealer, you must file a yearly report. The report is due by July 25 and covers July 1 through June 30. You must also pay any tax you owe with the filing.

Tax cases attach documents to complaints

In tax enforcement cases, the required document must be attached to the complaint, not the notice. This changes how papers are served in tax disputes and collections.

Hydrogen fuel taxed like natural gas

The law adds hydrogen to the same fuel‑tax rules that apply to compressed natural gas. It sets how to count taxable gallons by weight: 5.66 pounds equals one gallon for CNG, and 2.2 pounds equals one gallon for hydrogen. These rules decide how much tax is charged on hydrogen and CNG used in vehicles.

Law takes effect immediately

All changes in this act take effect when it becomes law. There is no delayed start date.

Edits to liquified gas tax rules

The state deletes the last sentence in two liquified gas sections and removes one subsection. These edits align the text with the new rules. The bill text does not restate the removed language.

Sponsors & Cosponsors

Sponsor

  • Jack Johnson

    Republican • Senate

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. Pub. Ch. 653

    4/6/2026

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

    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. Subst. for comp. HB.

    3/16/2026House

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

    3/16/2026House

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

    3/12/2026House

  11. Passed Senate, Ayes 32, Nays 0

    3/9/2026Senate

  12. Engrossed; ready for transmission to House

    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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