AN ACT to amend Tennessee Code Annotated, Section 67-6-303, relative to military service members.
Summary
HB1801 amends Tennessee’s sales and use tax exemption statute to add a new category of qualifying military personnel. Specifically, it extends the exemption to a member of a uniformed service on active military service who is a Tennessee resident and is stationed outside Tennessee under orders from that service branch. The bill is narrowly focused on this tax treatment and does not otherwise alter the broader structure of the tax code.
The practical effect is to relieve certain out-of-state stationed active-duty service members who remain Tennessee residents from paying the applicable state sales and use tax on qualifying purchases, consistent with the existing exemption framework in Tennessee Code Annotated Section 67-6-303. The act is scheduled to take effect on July 1, 2026, and would apply prospectively from that date.
Impact
The bill amends Tennessee Code Annotated Section 67-6-303 by adding a new exemption category for active-duty uniformed service members who are Tennessee residents but are stationed out of state under military orders. This changes state tax law by expanding eligibility for the sales and use tax exemption to a specific class of military personnel and may reduce tax liability for affected service members and potentially reduce state tax collections by a limited amount.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears straightforward and favorable to military families, with a targeted policy purpose and no apparent controversy in the record provided.
Contention
The available record does not identify any specific points of contention, because there are no committee discussions or votes included. If concerns were raised, they would most likely relate to the fiscal impact of expanding a tax exemption or to the precise eligibility rules for determining who qualifies as a Tennessee resident stationed out of state, but those issues are not documented in the materials provided.
AN ACT to amend Tennessee Code Annotated, Section 8-27-201; Section 8-27-301 and Section 8-27-701, relative to membership of group insurance committees.