Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
.. ·•
.-~·
f ~fl,,
RE \l~):
': ~\\ =~"Sf,= J:~:
~tate of ~ennessee
PUBLIC CHAPTER NO. 743
HOUSE BILL NO. 878
By Representatives Stinnett, McCalmon
Substituted for: Senate Bill No. 1099
By Senators Haile, Gardenhire, Rose
AN ACT to amend Tennessee Code Annotated, Title 40 and Title 67, relative to privilege
tax.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 40-24-107(a), is amended by adding
the following as new subdivisions:
(7) On a quarterly basis, at the request of the state treasurer, clerks of the
various courts shall report the following to the commissioner of revenue and the state
treasurer in such a manner as may be prescribed by the commissioner of revenue or the
state treasurer, for persons subject to the imposition of a privilege tax pursuant to this
section:
(A) The amount of privilege tax collected in the aggregate for the quarter;
(8) The amount of privilege tax remitted to the department of revenue in
the aggregate for the quarter; and
(C) On a per case basis:
(i) The amount of privilege tax suspended, released, waived,
remitted, or not collected; and
(ii) The reason for the privilege tax suspension, release, waiver,
remittance, or failure to collect the privilege tax, including, but not limited
to, whether the collection of the tax was waived by a court order or the
court clerk.
(8) At the request of the state treasurer, clerks of the various courts shall submit
the following to the state treasurer relative to the privilege tax collected under this
section:
(A) A copy of the court's written waiver policy or procedure, if any;
(8) A description of how and with what frequency defendants are notified
of the obligation to pay the privilege tax, including, but not limited to, a copy of
the initial and follow-up communications with the defendant and a copy of the
court's written policy or procedure for notifying defendants;
(C) A description of the use of a collection agency or other third-party
providers to collect unpaid privilege taxes, including, but not limited to, the
number of defendants who have had their unpaid privilege tax sent to a collection
agency with the unpaid amounts on a per defendant basis;
(D) A description of other privilege tax collection efforts used by the courts
or court clerks, including, but not limited to, promissory notes or payment plans;
(E) A description of the court clerk's efforts in complying with subsection
(b); and
HB878
(F) Any other information or documentation requested by the state
treasurer.
SECTION 2. Tennessee Code Annotated, Section 67-4-605(a), is amended by deleting
the subsection and substituting:
(a) Any privilege tax imposed by § 67-4-602 that the clerk of the court fails to
collect and pay to the department of revenue is a debt of the clerk. For purposes of this
section, "clerk of the court" includes the clerks for the courts listed in§ 67-4-604.
SECTION 3. Tennessee Code Annotated, Section 67-4-605(c), is amended by deleting
the subsection and substituting:
(c) On a quarterly basis, at the request of the state treasurer, a clerk of the court
shall report the following to the commissioner of revenue and the state treasurer in such
a manner as may be prescribed by the commissioner of revenue or the state treasurer,
for persons subject to the imposition of a privilege tax pursuant to § 67-4-602:
(1) The amount of privilege tax collected in the aggregate for the quarter;
(2) The amount of privilege tax remitted to the department of revenue in
the aggregate for the quarter; and
(3) On a per case basis:
(A) The amount of privilege tax suspended, released, waived,
remitted, or not collected; and
(8) The reason for the privilege tax suspension, release, waiver,
remittance, or failure to collect the privilege tax, including, but not limited
to, whether the collection of the tax was waived by a court order or the
court clerk.
SECTION 4. Tennessee Code Annotated, Section 67-4-605, is amended by adding the
following as a new subsection:
(d) At the request of the state treasurer, a clerk of the court shall submit the
following to the state treasurer relative to the privilege tax collected under this part:
(1) A copy of the court's written waiver policy or procedure, if any;
(2) A description of how and with what frequency defendants are notified
of the obligation to pay the privilege tax, including, but not limited to, a copy of
the initial and follow-up communications with the defendant and a copy of the
court's written policy or procedure for notifying defendants;
(3) A description of the use of a collection agency or other third-party
providers to collect unpaid privilege taxes, including, but not limited to, the
number of defendants who have had their unpaid privilege tax sent to a collection
agency with the unpaid amounts on a per defendant basis;
(4) A description of other privilege tax collection efforts used by the courts
or court clerks, including, but not limited to, promissory notes or payment plans;
and
(5) Any other information or documentation requested by the state
treasurer.
SECTION 5. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to the imposition and collection of privilege taxes on or after July 1, 2026.
2
---,-------· ---n-r-~--
HOUSE BILL NO. 878
PASSED: March 26, 2026
C'Jf_
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RG ~ ,.., ~ c . ~c..._l~~
\ RANDY MC~LLY
SPEAKER OF THE SENATE
I I APPROVED this (p-te., day of f'¥>n· 2026
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.