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. 927
HOUSE BILL NO. 397
By Representatives Vital, Hakeem, Greg Martin
Substituted for: Senate Bill No. 211
By Senators Watson, Gardenhire
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and
use taxes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-103(d)(1)(A), is amended by
adding the following as a new subdivision:
(ix)
(a) Notwithstanding the allocations provided for in subsection (a), and
subject to subdivision (d)(1 )(A)(ix)(c), if a stadium, which is designed to host
games of an intercollegiate football team that competes in the NCAA Division I
Football Championship Subdivision (FCS), games of international and high
school soccer teams, and local and regional events, exists in a county having a
population of not less than three hundred sixty-six thousand two hundred
(366,200) nor more than three hundred sixty-six thousand three hundred
(366,300), according to the 2020 federal census or any subsequent federal
census, and only if the entity designated to govern the operations of the stadium
reimburses the· state for costs to reallocate apportionments of the tax revenue
under this section, then, beginning January 1, 2027, an amount must be
apportioned and distributed to the entity equal to the amount of state and local
sales tax revenue, excluding any portion of local sales taxes that otherwise would
be allocated for school purposes, derived from the sale of admissions to all
events occurring within the stadium and from all sales of food, drinks,
merchandise, authorized goods and products, parking charges, and related
services sold on the premises of the stadium or on, or adjacent to, the premises
of a related ancillary facility, including a pavilion, in conjunction with an event
occurring at the stadium. Amounts apportioned and distributed to the entity must
be for the exclusive use of the entity to fund capital projects at the stadium,
including the payment of debt service for capital projects, and operation
expenses associated with the stadium. The allocation provided under this
subdivision (d)(1 )(A)(ix)(a) must continue until the debt service is retired, or July
1, 2056, whichever is sooner.
(b) If a portion of the state and local sales tax revenue to be allocated to
the entity undersubdivision (d)(1)(A)(ix)(a) was, prior to January 1, 2027, subject
to allocation to a municipality pursuant to title 7, chapter 88, then the municipality
may negotiate and receive annual payments from the entity, and may enter into
an agreement with respect to the payments, that are substantially equal to the
amount that would have been allocated to the municipality under title 7, chapter
88 but for the allocation of revenue to the entity under subdivision (d)(1)(A)(ix)(a).
The agreement must expire on June 30, 2032.
(c) In order to receive an allocation of sales and use tax revenue under
subdivision (d)(1 )(A)(ix)(a), the entity shall submit to the commissioner of
revenue a copy of the agreement entered into between the entity and
municipality pursuant to subdivision (d)(1 )(A)(ix)(b).
SECTION 2. This act takes effect upon becoming a law the public welfare requiring it.
1
HOUSE BILL NO. 397
PASSED: April 22, 2026
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNALL.:
SPEAKER OF THE SENATE
1~ . a rv\-.1 2026
APPROVED this _ _ _ day of
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BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.