HB 780 - SB 875
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 780 - SB 875
SUMMARY OF BILL: Requires the Department of Economic and Community
Development (ECD) to revise and certify the population of each county and municipality and the
aggregate population of the state by July 1 each year during the interim between the regular
decennial federal census. Requires the Boyd Center for Business and Economic Research at the
University of Tennessee (Center) to generate annual population estimates for each county and
municipality and provide such estimates to ECD for review and certification. Requires ECD to
provide such revised certified populations to the Department of Revenue (DOR) and the
Department of Finance and Administration (F&A). Requires the allocation of certain tax collections
to be made according to the revised certified populations except in instances where a jurisdiction’s
population is revised as a result of a special census or the regular decennial federal census. Effective
January 1, 2026.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund University of Tennessee
FY25-26 $326,000 $13,500
FY26-27 & Subsequent Years - $27,000
Assumptions:
• The local allocation of sales and use tax collections and sports wagering privilege tax
collections are based on population estimates certified by ECD when cities and counties
take a special census in years between the decennial federal censuses.
• The proposed legislation requires the Center to provide annual population estimates for
each county and city to ECD for certification.
• ECD cannot meet the requirements of the proposed legislation within existing resources.
According to ECD, the system currently used to provide their Certified Population Report
will require an estimated $326,000 in upgrades in order to meet the increased volume of
certifications.
• Therefore, there will be a one-time increase in state expenditures of $326,000 in FY25-26
for such upgrades.
• Based on information provided by the Center, the Center projects population by county on
occasion. The proposed legislation will expand the scope of this data collection to include
municipalities, and require the Center to conduct annual estimates of the current population
by county and municipality.
HB 780 - SB 875 2
• The Center cannot meet the requirements of the proposed legislation within existing
resources. According to the Center, they will require approximately $27,000 for staff
resourcing annually.
• Due to the effective date of January 1, 2026, the state will recognize a half a year impact in
FY25-26.
• Therefore, there will be a one-time increase in state expenditures of $13,500 ($27,000 x
50%) in FY 25-26 and a recurring increase in state expenditures of $27,000 in FY26-27 and
subsequent years.
• Basing the distribution of certain tax collections on annual population estimates may impact
the amount of tax allocations to locals. However, the extent to which each local
jurisdiction’s allocations are impacted as a result of the proposed legislation is anticipated to
be minimal, if any. The total local allocations will not be impacted.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director