AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9; Title 49 and Title 67, relative to lottery tickets.
Summary
SB0762 creates a new county-level tax on the retail sale of Tennessee lottery tickets and lottery shares. The bill defines key terms such as “lottery ticket,” “share,” “lottery retailer,” and the responsible state officials, then directs each county to levy a 5% tax on the sales price of lottery tickets or shares sold at retail within that county. The tax is described as additional to all other taxes imposed on lottery retailers.
The Department of Revenue would administer and collect the tax, and lottery retailers would be required to register with the department and file monthly returns. The bill also authorizes the Tennessee Education Lottery Corporation to share sales information with the department solely for tax administration and collection purposes. Of the revenue collected, 2% would be retained for administration, and the remainder would be distributed in the same manner as existing law under § 67-6-712. The act would take effect immediately for rulemaking and form development, with the tax provisions taking effect January 1, 2026.
Impact
This bill would add a new part to Title 67 governing a county entertainment tax on lottery ticket and lottery share sales, expanding Tennessee tax law to specifically cover lottery retail transactions. It would impose new compliance obligations on lottery retailers, including registration, monthly reporting, and remittance, while giving the Department of Revenue authority to collect the tax, promulgate rules, and receive sales data from the Tennessee Education Lottery Corporation. Counties would gain a new revenue source tied to lottery sales, and the state would establish a framework for administering and distributing those funds.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the bill text alone, the measure appears administrative and revenue-focused rather than controversial on its face, but it would likely be viewed through the lens of local tax policy and lottery-related revenue generation.
Contention
The main potential point of contention is the creation of a new 5% county tax on lottery ticket and share sales, which could be opposed by lottery retailers, consumers, or local officials concerned about higher costs, administrative burden, or uneven county-by-county taxation. Another possible issue is the requirement that the Tennessee Education Lottery Corporation share sales information with the Department of Revenue, though the bill limits that disclosure to tax administration and collection purposes. No specific objections or supporters are identified in the available materials.
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 29; Title 33; Title 38; Title 39; Title 40; Title 41; Title 43; Title 45; Title 50; Title 53; Title 54; Title 63; Title 67; Title 68 and Title 71, relative to the "Pot for Potholes Act."
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