Natural Disasters - As enacted, enacts the "Local Disaster Displacement Tax Relief Act." - Amends TCA Title 7, Chapter 4; Title 58 and Title 67, Chapter 4. Companion bill has been assigned Public Chapter Number 979 by th, the official text

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State f/JMllle<Ssee

                              PUBLIC CHAPTER NO. 979

                                                    SENATE BILL NO. 2504

                                                       By Campbell, Oliver

                                           Substituted for: House Bill No. 2210

                                                       By Powell, Salinas

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 4; Title 58 and Title 67, Chapter 4,
          relative to disaster response.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. This act is known and may be cited as the "Local Disaster Displacement Tax
Relief Act."

          SECTION 2. Tennessee Code Annotated, Section 58-2-110(3), is amended by adding the
following as a new subdivision (C):

                    (C) Notwithstanding another law to the contrary and pursuant to subdivisions (3)(A)(i)
          and (v), a county that has declared a state of local emergency or is subject to a state of
          emergency or disaster declaration under § 58-2-107 is authorized to provide tax relief from
          hotel occupancy and additional privilege taxes levied pursuant to title 67, chapter 4, part 14;
          title 7, chapter 4, part 1; title 7, chapter 4, part 2; or a private act for county residents
          displaced from their homes in the event of a declared emergency or disaster. Relief is
          subject to the following:

                              (i) Authorization for tax relief requires either a resolution from the county
                    legislative body or an executive order from the county executive authorizing the relief;

                              (ii) A county may authorize relief in the form of a waiver at the point of sale or
                    reimbursement for taxes paid, in consultation with the department of revenue in the
                    case of such taxes collected from short-term rental unit marketplaces pursuant to title
                    67, chapter 4, part 15, and the authorized collector in the case of such taxes collected
                    from hotel operators pursuant to title 67, chapter 4, part 14; title 7, chapter 4, part 1;
                    title 7, chapter 4, part 2; or a private act;

                              (iii) A county must set a duration for the period of authorized relief, not to
                    exceed fourteen (14) days, which may include a defined recovery period immediately
                    following the active emergency period;

                              (iv) A county may authorize reimbursement for taxes paid by a resident for
                    lodging in an adjoining county if there is limited vacancy within the county;

                              (v) A county must establish a process and procedures for:

                                        (a) Residents to attest or verify they are residents of the county and
                              are displaced from their homes as a result of a declared emergency or
                              disaster;

                                        (b) Hotel operators and short-term rental unit marketplaces, as those
                              terms are defined in§§ 67-4-1401 and 7-4-101, to waive hotel occupancy and
                              additional privilege taxes levied pursuant to title 67, chapter 4, part 14; title 7,
                              chapter 4, part 1; title 7, chapter 4, part 2; or a private act for county residents
                              displaced from their homes in the event of a declared emergency or disaster;
                              and
SB 2504
                                        (c) Residents to be reimbursed for taxes paid, if authorized and as

                              appropriate; and
                              (vi) Fraudulent claims or waivers are subject to existing penalties under state
                    and local law.
          SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.

                                                                 2
         SENATE BILL NO. 2504

PASSED:  April 21, 2026

                                         RANDY

                               SPEAKER OF TH

                         c~

                          CAMERONSEXTON,SPEAKER

                         HOUSE OF REPRESENTATIVES

APPROVED this /vf tL day of {V]Q A /\~  2026

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