Tennessee legislation · 114th General Assembly
Tennessee SB2166: 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.
Status: Chaptered, May 27, 2026
Fiscal Summary STATE GOVERNMENTREVENUEGeneral FundK-12 Education FundPOST CommissionFY26-27$34,788,200$34,788,200$34,788,200FY27-28 & Subsequent Years$69,576,500$69,576,500$69,576,500 EXPENDITURESGeneral FundFY26-27$96,400FY27-28 & Subsequent Years$94,700Total Positions Required: 1 LOCAL GOVERNMENTREVENUEMandatoryFY26-27$91,572,800FY27-28 & Subsequent Years$183,145,600 Bill Summary Present law levies a tax on the sales price of certain, specifically described, services. This bill adds the transmitting of 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 to the services that are subject to such a tax. INTERNATIONAL MONEY TRANSMISSION TAX FUND This bill requires revenues from the tax as described above to be deposited in a special account in the state general fund, called the international money transmission tax fund. All revenue must be retained in this account until the revenue is unencumbered. This bill provides that the revenue becomes unencumbered on July 1st of each year after the expiration of the application period for a refund, as described below. Refunds This bill requires revenues generated from the tax as described above to be subject to a refund upon an application from the individual who paid the tax. Such an application must be submitted to the department of revenue between June 1st and June 30th and include the applicant's social security number or taxpayer identification number and proof of the taxes paid. Allocation of Funds This bill requires unencumbered funds remaining in the international money transmission tax fund to be allocated and distributed on July 1st of each year. Twenty-five percent of the funds must be allocated to the state general fund; 25% must be a
What the bill says
From the amended text:
Senate Finance, Ways, and Means 1 Amendment No. 2 to SB2166 Watson Signature of Sponsor AMEND S e n ate Bill No. 2166* House Bill No. 2502 by deleting all language after the enacting clause and substituting: 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 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 …