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.
..··•qi}····--··
:• ,''l:RF~ ;\f',F_.j):.
.....
~tate of \lrennessee
PUBLIC CHAPTER NO. 1035
HOUSE BILL NO. 2502
By Mr. Speaker Sexton, Representatives Hill, Bricken, Williams, Cochran, Davis, Howell,
Terry
Substituted for: Senate Bill No. 2166
By Senator Watson
AN ACT to amend Tennessee Code Annotated, Title 4; Title 38; Title 39; Title 45; Title
47; Title 49 and Title 67, relative to money transmission.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-205(b), is amended by deleting
"Notwithstanding any other provision of law to the contrary," and substituting "Except as
provided in subsection (d) and notwithstanding any other law to the contrary,".
SECTION 2. Tennessee Code Annotated, Section 67-6-205, is amended by adding the
following as a new subsection:
(d)
(1) The service of transmitting money from a location originating in this
state to a location outside· of the United States or its territories by an entity
licensed under the Money Transmission Modernization Act, compiled in title 45,
chapter 7, is a taxable service under this chapter and, except as provided in
subdivision (d)(2)(A), is levied on the amount of money transmitted.
(2) Notwithstanding another law to the contrary, the tax imposed by
subdivision (d)(1) is levied at the rate of:
(A) Ten dollars ($10.00) per transaction; and
(B) If the transmission amount exceeds five hundred dollars
($500), then two percent (2%) of the amount of money transmitted in
excess of five hundred dollars ($500).
(3) Notwithstanding another law to the contrary, the service of transmitting
money from a location originating in this state to a location outside of the United
States or its territories as described in subdivision (d)(1) is not subject to the local
option tax imposed under part 7 of this chapter.
(4) Notwithstanding § 67-6-103 or another law to the contrary, revenues
generated from the tax imposed by subdivision (d)(1) must be allocated monthly
and distributed as follows:
(A) Twenty percent (20%) to the state general fund;
(B) Fifty-one and one-half percent (51.5%) to a special account
created in the state treasury to be known as the TennCare buyback fund
that is to be used solely to fund TennCare hospital buybacks. These
moneys are authorized to be deposited into the hospital trust fund as
necessary;
(C) Eighteen and one-half percent (18.5%) to a special account
created in the state treasury to be known as the promising futures fund
that is to be administered by the department of human services and used
solely to support pilot programs and targeted child care assistance
initiatives that:
HB2502
(i) Strengthen and stabilize this state's child care
workforce;
(ii) Support employer participation in shared child care cost
models;
(iii) Expand access to child care for working families who
are ineligible for existing subsidy programs; and
(iv) Provide accountability, transparency, and data-driven
evaluation to inform future programming and policy decisions;
(D) Five percent (5%) to the Tennessee housing development
agency to be used solely for workforce housing initiatives; and
(E) Five percent (5%) to a special account created in the state
treasury to be known as the teacher internship fund that is to be
administered by the department of education to provide paid internships
for teachers in training at public schools, including public charter schools.
(5) Any funds deposited in a special account described in subdivision
(d)(4) must remain in the account until expended for such described purposes
and shall not revert to the general fund.
(6) The transmission of money by any corporation defined as a financial
institution under § 67-4-2004, except for an entity licensed under title 45, chapter
7, is exempt from the tax levied pursuant to this subsection (d).
(7) For purposes of this subsection (d), "originating in this state" means:
(A) For a transaction requested in person, the physical location
within this state at which the in-person request is made; and
(8) For a transaction requested electronically or by phone, a
physical location in this state associated with the customer transmitting
money as determined by the provider of money transmission. In
determining whether the service of transmitting money is from a location
originating in this state under this subdivision (d)(7)(8), the provider of
money transmission may rely on information provided by the customer
regarding the location of such individual's residential address or such
business entity's principal place of business or other physical address
location, and any records associated with the customer that the provider
of money transmission may have that indicate such location, including,
but not limited to, an address associated with an account, is located
within this state.
(8) For purposes of this subsection (d), in determining whether money is
transmitted to a location outside the United States or its territories, the provider of
money transmission may rely on information provided by the customer regarding
the location of the recipient individual's residential address or business entity's
principal place of business or other physical address location, and any records
associated with the recipient that the provider of money transmission may have
that indicate such location, including, but not limited to, an address associated
with an account, is located outside the United States or its territories.
SECTION 3. Tennessee Code Annotated, Title 67, Chapter 6, Part 7, is amended by
adding the following as a new section:
67-6-715.
There is exempt from the local option tax the service of transmitting money from
a location originating in this state to a location outside of the United States or its
territories as described in§ 67-6-205{d).
2
HB2502
SECTION 4. Tennessee Code Annotated, Section 67-6-903, is amended by adding the
following as a new subsection:
(f) For the service of transmitting money from a location originating in this state to
a location outside of the United States or its territories under§ 67-6-205(d)(1), the sale is
sourced to the location in the state where the service of transmitting money originated as
determined under§ 67-6-205(d)(7).
SECTION 5. For purposes of promulgating rules and forms, this act takes effect upon
becoming a law, the public welfare requiring it. For all other purposes, this act takes effect
January 1, 2027, the public welfare requiring it.
3
HOUSE BILL NO. 2502
PASSED: April 22, 2026
CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
RANDY M~ALLY
SPEAKER OF THE SINATE
M 7 APPROVED this ~\~Pr- day of 2026
~ U<,e_
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.