HB 1108 - SB 1152
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 1108 - SB 1152
SUMMARY OF BILL: Enacts the Ola Mae Ransom Reintegration Act. Exempts veterans of the
United States military, including the National Guard and Reserves, from the business license fee.
FISCAL IMPACT:
LOCAL GOVERNMENT
REVENUE Mandatory
FY25-26 & Subsequent Years ($117,500)
Assumptions:
• Pursuant to Tenn. Code Ann. § 67-4-723:
o A minimal activity license exists for businesses with between $3,000 and $100,000 in
annual gross receipts and requires:
▪ A one-time fee of $15 which must be paid to the county or municipal clerk
for a new business license; and
▪ A renewal fee of $15 which must be paid at the time of renewal.
o A standard business license exists for businesses with $100,000 or more in annual
gross receipts and requires:
▪ A one-time fee of $15 which must be paid to the county or municipal clerk
for a new business license; and
▪ In lieu of a license renewal fee, the Department of Revenue (DOR) to notify
the county or municipal clerk the licensee has filed their business tax return
and remitted the amount due.
o The county retains 100 percent of business license fee revenue.
• The proposed legislation exempts veterans of the United States military, including the
National Guard and the Reserves, from the business license fee.
• According to DOR, there were 96,903 new business applications in 2023.
• Some minimal activity licensees pay a total of $30 each year ($15 county fee + $15 city fee).
• According to the United States Small Business Administration, approximately 5.5 percent of
business owners in the United States are veterans.
• The estimated number of business license applications made by veterans in Tennessee is
5,330 (96,903 x 5.5%). For the purpose of this analysis, this number is assumed to remain
constant into perpetuity.
• For the purpose of this analysis, it is estimated approximately:
o 50 percent, or 2,665 (5,330 x 50%), of licensees pay $15 annually;
o 40 percent, or 2,132 (5,330 x 40%), of licensees pay $30 annually; and
HB 1108 - SB 1152 2
o 10 percent, or 533 (5,330 x 10%), of licensees pay $15 one-time.
• The decrease in local revenue is estimated to be $111,930 [(2,665 x $15) + (2,132 x $30) +
(533 x $15)].
• It is further assumed 5 percent of the applicable business owners have more than one
location, for which an additional license is necessary. The resulting decrease in local revenue
is estimated to be $5,597 ($111,930 x 5%).
• Therefore, the total mandatory decrease in local revenue as a result of the proposed
legislation is estimated to be $117,527 ($111,930 + $5,597) in FY25-26 and subsequent
years.
IMPACT TO COMMERCE:
BUSINESS IMPACT
FISCAL YEAR EXPENSES
FY25-26 & Subsequent Years ($117,500)
Assumption:
• The recurring decrease in business expenses is estimated to be $117,527. Any impact to jobs
in Tennessee is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director