Tennessee Bills

This bill changes how sales tax revenue from tires and motor vehicles is allocated in Tennessee. Instead of 100% going to the highway fund, 95.3970% of the revenue from new and used tires and new and used motor vehicles will go to the highway fund, with the remaining 4.6030% allocated to incorporated municipalities based on population. Certain tax revenues (from specific rate increases) will continue to be allocated as they currently are. The bill applies to revenue collected on or after October 1, 2026, and affects transportation funding and local municipality allocations.

HB 2007, the "End the Grocery Tax Act," eliminates the sales tax on groceries and food ingredients for consumers in Tennessee. It directly affects grocery shoppers and retailers by removing tax from food purchases, effective July 1, 2026. Key provisions include amending tax codes to exempt food from sales tax (Section 2), adjusting how state revenue is allocated (removing a 0.5% education funding requirement in Section 3), and updating definitions to reflect the exemption (Sections 5-7, 10-11). The bill ensures local governments receive equivalent funding based on previously exempt sales.

HB 1842 would remove the state sales tax on retail purchases of food and food ingredients for human consumption (Section 1), but simultaneously creates a conflicting provision requiring such items to be taxed under another tax category (Section 2). The bill also adjusts related tax rules, including ending a specific 0.5% tax revenue earmark for K-12 education (Section 3) and modifying requirements for businesses that sell food (Sections 7-8). These changes would directly affect grocery stores, restaurants, and food retailers by altering their sales tax obligations. The bill's contradictory provisions on whether food is taxable create uncertainty about its final impact on businesses and state revenue.

HB 2059 would reduce Tennessee's state sales tax rate on food and food ingredients from 4% to 2%, effective July 1, 2026. This change directly affects grocery stores, restaurants, and other businesses selling food items, as well as consumers purchasing food products. The bill amends Tennessee Code (Title 67, Chapter 6) to lower the tax rate, meaning businesses would collect and remit less tax on qualifying food items. If enacted, this policy change would decrease the tax burden for shoppers on everyday food purchases.

HB 1456 increases Tennessee's liability limits for state tort claims. It raises the maximum damages per claimant from $300,000 to $500,000 and per occurrence from $1 million to $1.5 million. This bill directly affects individuals or entities filing lawsuits against the state for injuries or damages caused by state actions. The changes take effect July 1, 2026, as specified in the bill text.

HB 189 repeals a $400 annual professional privilege tax for licensed professionals (such as lawyers, accountants, and engineers) in Tennessee. It eliminates this tax for all tax years beginning after June 1, 2026, meaning professionals will pay $0 for future tax years. The bill modifies Tennessee tax code to set the tax to $0 for tax years ending after May 31, 2026, while requiring payment for the current 2025-2026 tax year. This is a straightforward tax repeal with no new fees or programs.

HB 291 requires the University of Tennessee's Institute of American Civics to create a standardized course curriculum on American government and history for all public Tennessee colleges and universities. The curriculum must cover specific foundational documents, including the U.S. Constitution, Declaration of Independence, Federalist Papers, Emancipation Proclamation, Gettysburg Address, and Dr. Martin Luther King Jr.'s "Letter from Birmingham Jail," plus one additional African-American freedom struggle document. All public higher education students must complete this 3-semester-hour course before earning a bachelor's degree, starting with the 2025-2026 academic year, though equivalent advanced placement or dual credit courses may satisfy the requirement. The bill mandates that institutions implement this without increasing degree credit requirements or conflicting with accreditation standards.

HB 1289 changes the deadline for the Tennessee Wildlife Resources Agency to submit an annual report on Reelfoot Lake natural area administration, shifting it from January 8 to January 31 each year. This bill directly affects the agency’s administrative process by extending the submission timeframe for this specific report. The key provision is a simple date adjustment in Tennessee Code, with no new requirements or policy changes beyond the revised deadline. The bill is procedural in nature, focusing solely on the timing of an existing reporting obligation.

HB 447 requires Tennessee's Department of Correction to create an annual report tracking how many inmates earned sentence reduction credits (which shorten prison time). The report must detail these numbers and be submitted to the Senate Judiciary Committee and the relevant House committee on criminal sentencing. This bill amends specific sections of Tennessee law (Titles 3, 4, 40, and 41) to establish this reporting requirement. The change directly affects state corrections officials and provides lawmakers with data on sentence credit usage.

HB 1021 requires government agencies to pay full market value for the removal or acquisition of lawfully erected outdoor advertising devices (like billboards) when they are ordered removed for reasons such as highway safety. It directly affects billboard owners and local governments that enforce removal orders. The bill specifically prohibits using "amortization" (spreading payments over time) as valid compensation, mandating immediate full payment instead. This change applies to devices affected by condemnation or removal orders under existing laws, ensuring owners receive fair market value for their property.

HB 1108, known as the "Ola Mae Ransom Reintegration Act," exempts Tennessee veterans of the U.S. military (including National Guard and reserve members) from paying the $15 business license fee. The bill amends Tennessee Code sections 5, 6, 7, and 67 to remove this fee requirement for qualifying veterans. It directly affects veterans seeking business licenses in Tennessee, aiming to support their transition to civilian entrepreneurship. The exemption takes effect July 1, 2025.

HB 406 shortens the review period for medical device regulations from every three years to every two years. It directly affects the Tennessee Board of Pharmacy's oversight of facilities that manufacture, warehouse, and distribute medical devices. The bill requires an advisory committee - including medical device industry representatives and a department of economic development official - to review these regulations more frequently, focusing on advancements in new medical device technologies. This change updates multiple sections of Tennessee law (Titles 8, 47, 56, 63, and 71) to accelerate the review process. The bill does not alter the content of regulations, only the schedule for their periodic review.