SB 826 - HB 1368
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 15, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
SB 826 - HB 1368
SUMMARY OF BILL: Exempts services furnished by persons engaged in the appraisal of
real estate or real property from the business tax.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 & Subsequent Years ($73,500)
LOCAL GOVERNMENT
REVENUE Mandatory
FY25-26 & Subsequent Years ($86,300)
Assumptions:
• Pursuant to Tenn. Code Ann. § 67-4-712(d), any person having sales less than $100,000
shall be exempt from the business tax.
• Based on information provided by the Department of Revenue (DOR), business tax
collections for real estate appraisers were approximately $151,229 in FY23-24.
• Fiscal Review Committee staff’s current estimates for total business tax collection growth
rates are 1.30 percent in FY24-25 and 4.29 percent in FY25-26.
• Total business tax collections subject to the proposed legislation are estimated to be
$159,767 ($151,229 x 1.0130 x 1.0429) in FY25-26. For the purpose of this analysis, this
number is assumed to remain constant into perpetuity.
• Based on information provided by DOR, 46 percent of business tax collections was
allocated to the General Fund and approximately 54 percent was allocated to local
governments in FY23-24.
• The estimated recurring decrease in state revenue is $73,493 ($159,767 x 46%) in FY25-26
and subsequent years.
• The estimated recurring decrease in local revenue is $86,274 ($159,767 x 54%) in FY25-26
and subsequent years.
SB 826 - HB 1368 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director