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Revenue subcommittee sends mixed recommendations on tax bills, rolls two to next week
Summary
The Senate Revenue Subcommittee reviewed six bills affecting taxes and exemptions, sending three with negative recommendations and one with a positive recommendation; two bills were rolled to next week. Several measures carried fiscal notes and one amendment changed an effective date to Jan. 1, 2026.
The Tennessee Senate Revenue Subcommittee considered six bills on the calendar and issued formal committee recommendations on four, while two bills were rolled to next week. Committee members also placed an amendment on one bill that changed its effective date.
Chairman Yeager opened discussion on Senate Bill 752, which would exempt services furnished by persons engaged in the sale of real estate from the state's gross receipts tax. "I'm happy to bring it on behalf of the Tennessee realtors," Chairman Yeager said. The bill carried a fiscal note of $2,798,600. The committee adopted an amendment and then voted to send the bill out with a negative recommendation; the motion on the amendment was moved by Senator Hale and seconded by Senator Powers, and the final committee vote on the recommendation was recorded as five ayes.
Senate Bill 439, brought by Senator Powers, would allow taxpayers the option to increase their Tennessee excise tax liability in order to utilize additional tax credits that might otherwise go unused. "Senate Bill 439 allows taxpayers the option to increase their Tennessee excise tax liability to utilize additional tax credits that may otherwise go unused," Senator Powers said. The measure carried an amendment (3883) and no fiscal note was recorded; the committee approved a positive recommendation by unanimous committee vote.
Senate Bill 784, presented by Senator Wally, would change the calculation of the community development tax credit from a year-end point-in-time (Dec. 31) to a monthly average throughout the year and thereby reduce the ability to claim credits via short-term year-end lines of credit. Senator Wally said the change is intended to "help ensure our long term low income loans are eligible for the tax credits." The bill included amendment 3979, which moved the effective date to Jan. 1, 2026, and carried a fiscal note of $1,500,000. The committee voted to send the bill out with a negative recommendation; the clerk recorded the vote as four ayes and one member not voting.
Senate Bill 659, sponsored by Chairman Hensley, would allow religious organizations to hold four events per year (30-day periods) to sell items they do not normally sell tax free. "Presently the law lets them do 2 different times during the year and this would just open up to allow them to do 4 times of 30 days to sell a product that they don't normally sell and do that tax free," Chairman Hensley explained. The bill carried a small fiscal note of $52,000. The committee voted to send the measure out with a negative recommendation.
Senate Bill 1095, also presented by Chairman Hensley, would make the first $20 of any purchase tax-free when paid with cash (including coins, paper currency, and physical gold or silver declared legal tender). Hensley noted a fiscal note of $2,200,000,000. The committee moved and approved a negative recommendation on the bill.
Two bills were rolled to next week's calendar: Senate Bill 430 by Senator Reeves and Senate Bill 1164 by Senator Ackberry (listed in the record as "to next week's calendar").
Votes at a glance
- SB 752 (exempt real estate sales services from gross receipts tax): amendment added; fiscal note $2,798,600; motion for negative recommendation moved by Senator Hale, seconded by Senator Powers; committee outcome: negative recommendation approved (5 ayes).
- SB 439 (option to increase Tennessee excise tax liability to use tax credits): amendment 3883 added; no fiscal note; sponsor Senator Powers; committee outcome: positive recommendation approved (unanimous vote recorded as 5 ayes).
- SB 784 (community development tax credit: change to monthly average; effective date moved to 01/01/2026 by amendment 3979): fiscal note $1,500,000; sponsor Senator Wally; committee outcome: negative recommendation approved (vote recorded 4 ayes, 1 not voting).
- SB 659 (allow religious organizations four tax-free sales periods per year): fiscal note $52,000; sponsor Chairman Hensley; committee outcome: negative recommendation approved (vote recorded as ayes by the clerk).
- SB 1095 (first $20 of a cash purchase tax-free): fiscal note $2,200,000,000; sponsor Chairman Hensley; committee outcome: negative recommendation approved (ayes recorded by the clerk).
- SB 430 (by Senator Reeves) and SB 1164 (by Senator Ackberry): rolled to next week's calendar; no committee action taken.
The committee chair reminded members the subcommittee will meet one more time this year (next Tuesday in March) and reminded members of the bill-notice and amendment deadlines. Members were asked to send bill notices and amendments to Laney Phillips in the Senate Finance Office.
The record shows motions, amendment numbers, fiscal notes, and roll calls as noted above. The committee did not adopt any final enactments; the recorded committee recommendations will be entered into the legislative process per Senate rules.
