Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0574 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 521
3	3	By Reedy
4	4
5	5	SENATE BILL 574
6	6	By Powers
7	7
8	8
9	9	SB0574
10	10	002196
11	11	- 1 -
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13	13	AN ACT to amend Tennessee Code Annotated, Title 57,
14	14	Chapter 5 and Title 67, Chapter 4, relative to the
15	15	taxation of certain beverages.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Section 57-5-201(a)(1), is amended by
19	19	deleting the language:
20	20	Every person, firm, corporation, joint-stock company, syndicate or association in
21	21	this state storing, selling, distributing, or manufacturing such beer or other
22	22	beverages as are described in this chapter shall pay a special privilege tax, in
23	23	addition to all other taxes, in an amount equal to four dollars and twenty-nine
24	24	cents ($4.29) per barrel of thirty-one liquid gallons (31 gals.) stored, sold,
25	25	distributed by gift or sale or manufactured in this state; provided, that the rate
26	26	shall be reduced by fifty cents (50¢) on July 1 of any year following the
27	27	enactment of any state or federal law that imposes mandatory deposits by
28	28	consumers on beverage containers sold in this state or on July 1, 2028,
29	29	whichever occurs first.
30	30	and substituting instead:
31	31	Every person, firm, corporation, joint-stock company, syndicate, or association in
32	32	this state storing, selling, distributing, or manufacturing such beer or other
33	33	beverages as are described in this chapter shall pay a special privilege tax, in
34	34	addition to all other taxes, in an amount equal to two dollars ($2.00) per barrel of
35	35	thirty-one liquid gallons (31 gals.) stored, sold, distributed by gift or sale, or
36	36	manufactured in this state.
37	37
38	38
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40	40
41	41	SECTION 2. Tennessee Code Annotated, Section 57-5-201(a)(2), is amended by
42	42	deleting the subdivision and substituting instead:
43	43	(2) Notwithstanding this section or another law to the contrary, one dollar ($1.00)
44	44	of the revenue generated from the special privilege tax authorized in subdivision (a)(1)
45	45	shall be allocated to the highway fund for the purpose of funding programs for the
46	46	prevention and collection of litter and trash and matters related to the programs,
47	47	including special grants for programs described in § 54-1-407.
48	48	(3) One dollar ($1.00) of the revenue generated from the special privilege tax
49	49	authorized in subdivision (a)(1) must be allocated to recycling grants issued by the
50	50	department of environment and conservation for the purpose of funding material
51	51	recycling programs, including aluminum, plastic, glass, and other recyclable materials.
52	52	(4) No later than March 31 of each year, the department of transportation and
53	53	department of environment and conservation shall transmit to the governor and the
54	54	speakers of the house of representatives and senate a report listing the programs
55	55	receiving funds generated by this subsection (a), the amount of funds received by each
56	56	program, and the purpose for which the funds were spent.
57	57	(5) This subsection (a) and subsection (b) are repealed on July 1 of any year
58	58	following the enactment of any state or federal law that imposes mandatory deposits by
59	59	consumers, taxes, or fees on beverage containers sold in this state or on July 1, 2028,
60	60	whichever occurs first.
61	61	SECTION 3. Tennessee Code Annotated, Section 57-5-202(a), is amended by deleting
62	62	the language "The commissioner shall expend so much of four percent (4%)" in the
63	63	second sentence and substituting instead the language "Prior to July 1, 2025, the
64	64	commissioner shall expend so much of four percent (4%)".
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66	66
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68	68
69	69	SECTION 4. Tennessee Code Annotated, Section 57-5-205, is amended by deleting the
70	70	language "The state privilege tax collected under §§ 57-5-201 -- 57-5-204" and
71	71	substituting instead the language "Prior to July 1, 2025, the state privilege tax collected
72	72	under §§ 57-5-201 -- 57-5-204".
73	73	SECTION 5. Tennessee Code Annotated, Section 67-4-402(b), is amended by deleting
74	74	the subsection and substituting instead:
75	75	(1) Imposition of Tax. A person manufacturing or producing and selling within
76	76	this state any bottled soft drinks and a person importing or causing to be imported
77	77	bottled soft drinks into this state from outside the state and selling such imported bottled
78	78	soft drinks within this state shall, for the privilege of engaging in such business, pay to
79	79	the state for state purposes an amount equal to nine-tenths percent (0.9%) of the
80	80	person's gross receipts derived from such business.
81	81	(2)
82	82	(A) Notwithstanding this section or another law to the contrary:
83	83	(i) Five-tenths percent (0.5%) of the revenue generated from the
84	84	special privilege tax authorized in subdivision (b)(1) must be allocated to
85	85	the highway fund for the purpose of funding programs for the prevention
86	86	and collection of litter and trash and matters related to the programs,
87	87	including special grants for programs described in § 54-1-407; and
88	88	(ii) Four-tenths percent (0.4%) of the revenue generated from the
89	89	special privilege tax authorized in subdivision (b)(1) must be allocated to
90	90	recycling grants issued by the department of environment and
91	91	conservation for the purpose of funding material recycling programs,
92	92	including aluminum, plastic, glass, and other recyclable materials.
93	93
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97	97	(B) No later than March 31 of each year, the department of transportation
98	98	and department of environment and conservation shall transmit to the governor
99	99	and the speakers of the house of representatives and senate a report listing the
100	100	programs receiving funds generated by this subsection (b), the amount of funds
101	101	received by each program, and the purpose for which the funds were spent.
102	102	SECTION 6. Tennessee Code Annotated, Section 67-4-402, is amended by adding the
103	103	following new subsection:
104	104	(e) This section is repealed on July 1 of any year following the enactment of any
105	105	state or federal law that imposes mandatory deposits by consumers, taxes, or fees on
106	106	beverage containers or sold in this state or on July 1, 2028, whichever occurs first.
107	107	SECTION 7. The Tennessee Code Commission is directed to delete references to the
108	108	taxes repealed by this act, when such repeal occurs.
109	109	SECTION 8. This act takes effect on July 1, 2025, the public welfare requiring it.