Bill > SB2166

This bill amends Tennessee law to classify money transmissions originating in Tennessee and sent to locations outside the United States or its territories as taxable service transactions, meaning they will be subject to sales and use tax. Specifically, for entities licensed under the Money Transmission Modernization Act (Title 45, Chapter 7), the tax will be $10.00 per transaction, with an additional 2% applied to the amount exceeding $500. Importantly, these transmissions will be exempt from local option taxes. The revenues generated from this new tax are allocated to several specific purposes: 20% to the state general fund, 51.5% to a special fund for TennCare hospital buybacks, 18.5% to a "promising futures fund" to support child care initiatives, 5% to the Tennessee housing development agency for workforce housing, and 5% to a "teacher internship fund" for paid internships for teachers in training. The bill also clarifies how to determine if a transaction "originates in this state" for tax purposes, generally based on the physical location where the request is made or associated with the customer.