Tennessee House Bill HB1722

Tennessee 2023-2024 Regular Session

• Introduced: 1/9/24
• Refer: 2/27/24
• Failed: 3/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to sales tax.

Impact

By amending the reporting date, HB1722 could have a notable effect on the fiscal year planning for companies subject to sales tax. The earlier deadline may align better with many companies' financial practices, making it easier for them to comply with state requirements. It could also enhance the timing of state revenue collection, benefiting state budgeting and planning efforts. The bill seeks to maintain efficiency in tax reporting while optimizing state revenue flows from sales tax collections.

Summary

House Bill 1722 aims to amend the Tennessee Code Annotated, specifically Title 67, Chapter 6, which pertains to sales tax regulations. The primary change proposed by this bill is to modify the deadlines for the annual reporting of sales tax to the state. Instead of requiring reports by February 1 of each subsequent year until 2030, the bill proposes to shift this deadline to January 1 of each subsequent year until the same deadline. This adjustment is intended to streamline tax reporting processes for businesses operating in Tennessee.

Sentiment

The sentiment surrounding HB1722 appears to be generally neutral to positive among stakeholders. Supporters, primarily tax regulators and business owners, are likely to appreciate the streamlined reporting timeline as a simplification measure. However, there may be some concerns expressed by smaller businesses regarding the earlier reporting deadline potentially requiring them to adjust their accounting practices sooner than they might prefer.

Contention

There are not many significant points of contention identified around HB1722, given its relatively straightforward amendment aimed at improving efficiencies in sales tax reporting. The main concern could arise around timing from businesses accustomed to the previous February deadline. If businesses express difficulty adapting to the change, it may lead to discussions about the ideal alignment of sales tax reporting with broader financial practices.