HB 878 - SB 1099
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 28, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 878 - SB 1099
SUMMARY OF BILL: Clarifies that any litigation privilege tax that clerks of certain courts
fail to collect and pay to the Department of Revenue (DOR) are debts of the clerk.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 67-4-605, any privilege tax imposed on litigation instituted
in the state of Tennessee that the clerk of the court fails to collect and remit to DOR shall
be a debt of the clerk.
• The proposed legislation defines a clerk of the court to include clerks of the following, as
defined in Tenn. Code Ann. § 67-4-604:
o Court of Appeals;
o Chancery Court;
o Circuit Court;
o Criminal Court;
o Probate Court;
o Court of Law and Equity;
o County Court
o Court of General Sessions;
o Trial Justice Court;
o Magistrate Court;
o City Court; and
o Any other inferior court ordained by the General Assembly.
• According to DOR, such tax is not reported to the state until payment is made.
• Clarifying which clerks of the court bear the debt in the event they fail to collect and remit
the litigation tax to DOR will not significantly impact state or local operations, revenue, or
expenditures.
• Therefore, any fiscal impact is estimated to be not significant.
HB 878 - SB 1099 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director