Tennessee House Bill HB0193

Tennessee 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 2/3/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, Part 3, relative to exemption from sales tax on motor vehicles for members of the national guard.

Summary

HB0193 creates a new sales tax exemption for the sale or use of a motor vehicle registered in Tennessee when the vehicle is sold to a qualifying member of the Tennessee National Guard. The exemption applies only to the first $15,000 of the vehicle’s sales price and is limited to one vehicle per qualifying individual within any five-year period. To claim the exemption, the purchaser must provide proof of National Guard membership and documentation from the member’s unit certifying that the member is in good standing. The seller, or county clerk when applicable, must keep copies of the proof and certification, and the documentation must also accompany the vehicle registration application. The act takes effect July 1, 2025, and applies only to purchases made on or after that date.

Impact

The bill amends Tennessee Code Annotated, Title 67, Chapter 6, Part 3, by adding a new exemption to the state sales tax on motor vehicles. It reduces the tax burden for eligible Tennessee National Guard members on qualifying vehicle purchases, while also creating administrative documentation requirements for sellers, county clerks, and registrants to verify eligibility and preserve records.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a straightforward, supportive tax benefit for National Guard members. The framing of the bill suggests generally favorable sentiment toward recognizing military service through a targeted tax exemption, with no documented opposition or recorded controversy in the available context.

Contention

No specific points of contention are reflected in the provided transcripts or voting history because none were supplied. Potential issues inherent in the bill’s design include the cost of the exemption to state revenue, the fairness of limiting the benefit to National Guard members rather than other service members or taxpayers, and the administrative burden of verifying eligibility and tracking the five-year, one-vehicle limit.