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.
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PUBLIC CHAPTER NO. 653
SENATE BILL NO. 1875
By Johnson
Substituted for: House Bill No. 2544
By Lamberth, Cochran, Baum
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 1, Part 18; Title 67, Chapter 3,
Part 11 and Title 67, Chapter 6, relative to taxation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-1-1801(b)(1), is amended by deleting
the language "attached to the notice" and substituting instead the language "attached to the
complaint".
SECTION 2. Tennessee Code Annotated, Section 67-3-1103(a), is amended by deleting the
subsection and substituting instead the following:
(a) A person using a liquified gas propelled motor vehicle, including a motor vehicle
equipped to use liquified gas interchangeably with another motor fuel, that is required to be
licensed in this state for use on the public highways, shall pay the liquified gas tax on delivery
of the liquified gas into the fuel supply tank of a motor vehicle.
SECTION 3. Tennessee Code Annotated, Section 67-3-1104(c), is amended by deleting the
last sentence of the subsection.
SECTION 4. Tennessee Code Annotated, Section 67-3-1104(d), is amended by deleting the
subsection and substituting instead the following:
(d) A dealer permit authorizes a dealer to collect and remit taxes on liquified gas
delivered into the fuel supply tanks of motor vehicles.
SECTION 5. Tennessee Code Annotated, Section 67-3-1107(b), is amended by deleting the
subsection and substituting instead the following:
(b) A user permit must be issued upon proper application on a form prescribed by the
commissioner and is permanent and valid so long as the permittee furnishes timely reports
and remits the taxes when due, or until surrendered by the holder or cancelled by the
commissioner.
SECTION 6. Tennessee Code Annotated, Section 67-3-1108, is amended by deleting the
section and substituting instead the following:
(a) A dealer who makes a sale or delivery of liquified gas into a fuel supply tank of a
motor vehicle is liable to the state for the tax imposed and shall report and pay the tax in the
manner required by this part.
(b) A user who submits reports and pays the tax according to § 67-3-1110(b) and (c)
may deduct the amount of tax paid to a dealer from the amount of tax due.
SECTION 7. Tennessee Code Annotated, Section 67-3-1110(b), is amended by deleting the
first sentence of the subsection and substituting instead the following:
SB 1875
A permitted user operating a vehicle used for commercial purposes, who does not
pay the liquified gas tax to a dealer, is required to submit a report on or before July 25 of
each year, for the previous July 1 through June 30 period, and shall remit the tax due.
SECTION 8. Tennessee Code Annotated, Section 67-3-1110(c)(1), is amended by deleting
the last sentence of the subdivision.
SECTION 9. Tennessee Code Annotated, Section 67-3-1111, is amended by deleting the
section and substituting instead the following:
A user who submits reports and pays the tax according to § 67-3-111 0(b) and (c) is
entitled to a refund of liquified gas tax paid on each gallon of liquified gas used outside the
state. On verification by the commissioner that the report was complete and timely filed, the
refund must be paid if ten dollars ($10.00) or more is due to the user. No refund less than ten
dollars ($10.00) shall be paid. A refund shall not be granted if the report is not timely filed.
SECTION 10. Tennessee Code Annotated, Section 67-3-1112(b), is amended by deleting
the subsection.
SECTION 11. Tennessee Code Annotated, Section 67-3-1113(a}, is amended by deleting
the second sentence and substituting instead the following:
For the purpose of determining the tax on compressed natural gas, a gallon equivalent factor
of five and sixty-six one-hundredths pounds (5.66 lbs.) per gallon shall be used. For the
purposes of determining the tax on hydrogen gas, a gallon equivalent factor of two and two-
tenths pounds (2.2 lbs.) per gallon shall be used.
SECTION 12. Tennessee Code Annotated, Section 67-3-1114, is amended by adding the
language "or hydrogen gas" immediately after the language "compressed natural gas", wherever it
appears.
SECTION 13. Tennessee Code Annotated, Section 67-3-1119, is amended by adding the
language "or hydrogen gas" immediately after the language "natural gas" wherever it appears.
SECTION 14. Tennessee Code Annotated, Section 67-3-1120(b), is amended by deleting
the subsection and substituting instead the following:
(b) A natural gas or hydrogen gas dealer permit authorizes a dealer to collect and
remit taxes on compressed natural gas or hydrogen gas delivered into the fuel supply tanks
of motor vehicles by means of a qualified natural gas dispenser or hydrogen gas dispenser
with meter capability. When compressed natural gas or hydrogen gas is delivered by a
dealer to a customer's vehicle by means of a qualified natural gas dispenser or hydrogen gas
dispenser, user permits under this part are not required.
SECTION 15. Tennessee Code Annotated, Section 67-3-1120(d), is amended by adding the
language "or hydrogen gas" immediately after the language "compressed natural gas", wherever it
appears.
SECTION 1·6. Tennessee Code Annotated, Section 67-3-1120(e), is amended by adding the
language "or hydrogen gas" immediately after the language "compressed natural gas".
SECTION 17. Tennessee Code Annotated, Section 67-3-1120(f), is amended by deleting the
subsection and substituting instead the following:
(f) Meters, qualified natural gas dispensers, and hydrogen gas dispensers are subject
to inspection and verification by the department of agriculture's weights and measures in
accordance with title 47, chapter 26, part 9, and such part's enforcement provisions.
SECTION 18.
(a) Tennessee Code Annotated, Section 67-6-102, is amended by adding the
following as new, appropriately designated subdivisions:
( ) "Air-to-ground radiotelephone service" means a radio service, as that term
is defined in 47 CFR 22.99, in which common carriers are authorized to offer and
provide radio telecommunications service for hire to subscribers in aircraft;
( ) "Call-by-call basis" means any method of charging for telecommunications
services where the price is measured by individual calls; •
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SB 1875
( ) "Communications channel" means a physical or virtual path of
communications over which signals are transmitted between or among customer
channel termination points;
() "Home service provider" has the same meaning as defined in 4 U.S.C. §
124(5);
( ) "Post-paid calling service":
(A) Means the telecommunications service obtained by making a
payment on a call-by-call basis either through the use of a credit card or
payment mechanism such as a bank card, travel card, credit card, or debit
card, or by charge made to a telephone number which is not associated with
the origination or termination of the telecommunications service; and
(8) Includes a telecommunications service that would be a prepaid
calling service except it is not exclusively a telecommunication service;
(b) The Tennessee Code Commission is requested to make appropriate updates to
cross-references to§ 67-6-102 found in§§ 57-5-103(d), 67-4-1503, 67-6-209(c) and (d), 67-
6-318, and 67-6-406 to reflect new subdivision designations resulting from the addition of
new, appropriately designated subdivisions in accordance with this Section..
SECTION 19. Tennessee Code Annotated, Section 67-6-102(7), is amended by deleting the
language ". As used in this subdivision (7)" and substituting instead the language ", and for which".
SECTION 20. Tennessee Code Annotated, Section 67-6-509, is amended by deleting the
language "volunteer seller" wherever it appears and substituting instead the language "CSP-
compensated seller"; and is further amended by deleting the language "voluntary sellers" wherever it
appears and substituting instead the language "CSP-compensated sellers".
SECTION 21. Tennessee Code Annotated, Section 67-6-905(a), is amended by deleting the
subsection and substituting instead the following:
(a) As used in this section, unless the context otherwise requires:
(1) "Customer" means the •person or entity that contracts with the seller of
telecommunications services. If the end user of telecommunications services is not
the contracting party, then the end user of the telecommunications service is the
customer of the telecommunications service, but this provision only applies for the
purpose of sourcing sales of telecommunications services under this section.
"Customer" does not include a reseller of telecommunications service or for mobile
telecommunications service of a serving carrier under an agreement to serve the
customer outside the home service provider's licensed service area;
(2) "Customer channel termination point" means the location where the
customer either inputs or receives the communications; and
(3) "End user" means the person who utilizes the telecommunications service.
In the case of an entity, "end user" means the individual who utilizes the service on
behalf of the entity.
SECTION 22. This act takes effect upon becoming a law, the public welfare requiring it.
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SENATE BILL NO. 1875
PASSED: March 16, 2026
RANDY
SPEAKER OF TH
CAMER.EXTON,SPEAKER
HOUSE OF REPRESENTATIVES
~ APPROVED this day of April 2026
~
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