Tennessee legislation · 114th General Assembly
Tennessee HB2496: AN ACT to amend Tennessee Code Annotated, Title 7 and Title 67, relative to taxation.
Status: Chaptered, May 27, 2026
Fiscal Summary OTHER FISCAL IMPACT The timing and extent of any permissive increase in local revenue to Sevierville is based on multiple unknown variables and cannot be quantified with reasonable certainty. Bill Summary ON APRIL 13, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 2496, AS AMENDED. AMENDMENT #2 makes the following changes: Lowers the requires total public and private investment to meet the definition of "qualified public use facility" from $300 million to $200 million. Requires a portion of the sales and use taxes received by the commissioner of revenue to be distributed to a public entity designated by the municipality that is responsible for the retirement of all or a portion of the original debt relating to a performance venue with a seating capacity of at least 2,500 that previously was leased to a minor league baseball team. Such distribution must be equal to the amount of any incremental state and local sales and use tax revenue from the sale of food, drink, and other authorized goods or products, ticket sales, and parking charges that occur on the premises on which the performance venue is located. The apportionment must continue until the debt is retired, or after 30 years, whichever is sooner. However, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes or revenue derived from the increase in the rate of sales and use tax from 6% to 7% must be apportioned pursuant to this amendment.
What the bill says
From the amended text:
Senate Finance, Ways, and Means 1 Amendment No. 1 to SB2633 Watson Signature of Sponsor AMEND S e n ate Bill No. 2633* House Bill No. 2496 by deleting all language after the enacting clause and substituting: SECTION 1. Tennessee Code Annotated, Section 7-88-114, is amended by adding the following as a new subsection: (h) If a municipality or public authority is entitled to receive an allocation of sales tax revenues pursuant to this chapter and pursuant to § 67-6-103, then the municipality or public authority may apply such sales tax revenues from the applicable area for the purposes authorized under this chapter or for the purposes authorized by § 67-6-103, as determined by the municipality or public authority. SECTION 2. Tennessee Code Annotated, Section 67-4-3002, is amended by deleting subdivision (7)(D) and substituting instead: (D) A mixed-use development initially including a sports facility containing ten (10) or more sports fields or a performance venue with a seating capacity of at least two thousand five hundred (2,500), including any retail, office, hotel, apartment, condominium, and other commercial or residential uses, and for which any portion was located in a tourism development zone when certified, that is expected by the municipality to require a total public and private capital investment of two hundred million dollars ($200,000,000) or more; SECTION 3. Tennessee …