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TN HB1329

TN HB1329
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4; Title 67, Chapter 6 and Title 67, Chapter 7, relative to state administration fee on tax collection.


summary

Introduced
02/06/2025
In Committee
03/18/2025
Crossed Over
03/25/2025
Passed
04/15/2025
Dead
Signed/Enacted/Adopted
05/08/2025

Introduced Session

114th General Assembly

Bill Summary

As enacted, reduces from 1.125 percent to 0.75 percent the administrative fee percentage the department takes from the proceeds of the business tax, short-term rental unit occupancy tax, local tax surcharge, coal severance tax, and local option sales tax to assist in defraying the expenses of administration and collection, before remitting proceeds to the appropriate county, city, or town. - Amends TCA Title 67, Chapter 4; Title 67, Chapter 6 and Title 67, Chapter 7.

AI Summary

This bill reduces the administrative fee that the Tennessee Department of Revenue can retain when collecting certain taxes from 1.125% to 0.75%. Specifically, the bill amends multiple sections of Tennessee tax law to lower the percentage of tax proceeds the department can keep to cover its administrative and collection expenses. The affected taxes include business tax, short-term rental unit occupancy tax, local tax surcharges, coal severance tax, and local option sales tax. By reducing this administrative fee, more of the collected tax revenue will be remitted directly to the county, city, or town that originally levied the tax. The bill also removes a specific subsection related to tax collection in one section of the code. The changes will take effect on July 1, 2025, and will apply to tax collections received on or after that date, giving government agencies and taxpayers time to prepare for the new administrative fee rate.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Effective date(s) 07/01/2025 (on 05/08/2025)

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