Tennessee Senate Bill SB0384

Tennessee 2025-2026 Regular Session

• Introduced: 1/28/25
• Engrossed: 3/17/25
• Enrolled: 4/22/25
• Passed: 5/5/25
• Chaptered: 6/4/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 14, relative to taxation.

Summary

SB0384 amends Tennessee’s hotel occupancy tax law. Under current law, hotel operators collect and remit the local occupancy tax on stays; this bill changes the rule for guests who remain in a hotel for 30 continuous days. Once a person has maintained occupancy for 30 straight days, the operator must remit the tax already collected for that period to the municipality and then stop collecting the tax from that person for the rest of the stay. The bill applies to rental agreements entered into, renewed, or amended on or after July 1, 2025, and takes effect upon becoming law. In practical terms, it creates a long-stay exemption from continued hotel occupancy tax collection after the 30-day threshold, while preserving the municipality’s ability to receive tax revenue for the initial period of occupancy. The measure amends Tennessee Code Annotated, Title 67, Chapter 4, Part 14, which governs local taxation of hotel occupancy and similar accommodations.

Impact

The bill narrows the application of Tennessee’s local hotel occupancy tax for extended-stay guests by requiring operators to stop collecting the tax after 30 continuous days of occupancy. It affects hotel and lodging operators, municipalities that receive occupancy tax revenue, and guests in long-term stays, including extended-stay hotel residents and potentially other transient lodging arrangements covered by the statute. The amendment changes the administrative handling of tax collection and remittance for qualifying stays beginning with agreements entered into, renewed, or amended on or after July 1, 2025.

Sentiment

The bill appears to have been broadly supported and moved through the legislature with little visible opposition. It received a unanimous 8-0 recommendation in the Senate State & Local Government Committee, then passed the Senate floor 30-0 on third consideration, and later passed the House 77-13. The vote pattern suggests general agreement on the policy change, though the House vote indicates some members remained opposed or concerned.

Contention

No committee transcript was provided, so specific arguments for or against the bill are not available. The main likely point of contention is the fiscal and administrative effect on municipalities and hotel operators: supporters may view the change as a fair tax adjustment for long-term occupants, while opponents may worry about reduced local tax revenue or added compliance complexity in determining when the 30-day threshold is met. The recorded House opposition suggests some disagreement remained, even though the bill advanced comfortably overall.