Bill > SB0036

This bill amends Tennessee tax law to provide a business tax exemption for child care agencies as defined in § 71-3-501. Specifically, the bill adds child care agencies to the list of entities exempt from certain business taxes and requires the state to annually allocate to counties and municipalities the same amount of tax revenue they received from child care services during the 2023-2024 fiscal year. This allocation will be made from state sales tax collections before other distributions, with a notable restriction that it does not include revenue from the sales tax rate increase from 6% to 7% implemented in 2002. The bill will take effect immediately upon becoming law and will apply to tax years ending on or after December 31, 2025. The purpose appears to be to provide financial support and tax relief to child care agencies, potentially to help support these essential services by reducing their tax burden and ensuring they receive consistent funding at the local government level.