Bill > HB0714

This bill requires the Tennessee Commissioner of Revenue to create a new sales tax remittance schedule that allows businesses selling tangible personal property to offset transaction fees associated with collecting sales tax. Specifically, the bill mandates that the commissioner, in consultation with the state treasurer, establish a holding period that gives dealers extra time to recoup their transaction costs before remitting sales taxes to the state. The length of this holding time will be calculated based on four key factors: the state's total sales tax remittance in the previous year, the percentage of credit and debit card transactions, the fees Tennessee residents pay for such transactions, and the current risk-free federal funds rate. The commissioner must review and monitor this holding time every six months to ensure its appropriateness. Importantly, the bill does not require changes to existing sales tax collection processes beyond extending the timeframe for tax remittance, and it will take effect immediately upon becoming law. The goal is to provide some financial relief to businesses by allowing them to temporarily retain sales tax revenues to cover the costs of processing payment transactions.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0714&ga=114