Tennessee legislation · 114th General Assembly

Tennessee HB397: AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales and use taxes.

Status: Chaptered, May 14, 2026

Fiscal Summary STATE GOVERNMENTREVENUEGeneral FundEach Year FY25-26 through FY54-55($342,200) LOCAL GOVERNMENTREVENUEMandatoryEach Year FY25-26 through FY54-55($89,900) Bill Summary Present law requires the commissioner of revenue to deposit promptly to the credit of the state treasurer in state depositories all moneys received through sales and use taxes, and all such moneys must be be earmarked and allocated in a certain way. Present law provides several special allocations. This bill creates a special allocation, requiring that a stadium in Hamilton County must be apportioned and distributed an amount equal to that of state and local sales tax revenue, excluding any portion of local sales taxes that otherwise would be allocated for school purposes, if it meets certain parameters, including all of the following:  It is designed to host games of an intercollegiate football team that competes in the NCAA Division I Football Championship Subdivision (FCS).  It is designed to host games of international and high school soccer teams.  It is designed to host local and regional events.  The entity designated to govern the operations of the stadium reimburses the state for costs to reallocate apportionments of the tax revenue under this bill. If the above parameters are met, this bill requires such amount be apportioned and distributed to the entity. The amount is derived from the sale of admissions to all events occurring within the stadium and from all sales of food, drinks, merchandise, and authorized goods and products sold from a location on the premises of the stadium in conjunction with an event occurring at the stadium, parking charges, and related services. However, this bill requires amounts apportioned and distributed to the entity be for the exclusive use of the entity to fund capital