Tennessee Senate Bill SB2690

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Chaptered: 5/13/24
• Passed: 5/13/24

Caption

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

Impact

The impact of SB 2690 is anticipated to be significant on state laws regarding taxation, particularly concerning how sales and use taxes are administered within Tennessee. By extending the expiration date of certain provisions, the bill may influence fiscal planning for both the state and taxpayers. These changes could result in different revenue projections and budgeting by local governments, as they adapt to the modified tax timelines.

Summary

Senate Bill 2690 aims to amend Tennessee's sales and use taxes by extending certain deadlines for tax provisions. Specifically, the bill proposes changing the expiration dates for specific items in the Tennessee Code Annotated from 2024 and 2025 to 2030 and 2031, respectively. This modification is intended to provide more stability for businesses and individuals affected by the sales tax regulations, giving them more time to adjust to the changes in taxation over the next several years.

Sentiment

The general sentiment surrounding SB 2690 appears to be positive among support groups and stakeholders in the business community. Proponents argue that the extended timelines will help businesses manage their financial obligations more effectively during a period of economic uncertainty. Conversely, some critics may express concern over the implications for state revenue and whether the delay in tax changes might defer necessary fiscal reforms.

Contention

While the bill seems to have an overall positive reception, the contention lies in how the extended deadlines might affect state budgetary allocations. Some legislators may worry that delaying tax adjustments could limit the state's ability to respond to fiscal needs in the short term, creating a potential budget gap in the interim. Additionally, concerns may arise regarding how this bill will interact with other proposed tax legislation and the overall equity of tax distribution among the state's population.