SB1099 revises Tennessee law governing the collection and reporting of privilege taxes imposed in criminal cases. The bill requires court clerks, at the request of the state treasurer, to provide quarterly reports to the commissioner of revenue and the state treasurer showing aggregate amounts collected and remitted, and, on a per-case basis, amounts suspended, released, waived, remitted, or not collected, along with the reason for any noncollection. It also requires clerks to provide supporting information about waiver policies, defendant notification practices, use of collection agencies or other third-party collectors, and other collection efforts such as promissory notes or payment plans.
The bill also amends the provision making unpaid privilege tax a debt of the clerk, clarifying that this responsibility applies to clerks of the courts listed in the relevant statute. The new reporting and documentation requirements are tied to the state treasurer’s request, and the act applies prospectively to privilege taxes imposed or collected on or after July 1, 2026. In practical terms, the measure increases state oversight of how courts and clerks assess, waive, notify, and collect privilege taxes, and it may affect court administrative practices, clerk liability, and revenue tracking under Titles 40 and 67.
The general sentiment reflected in the available history is favorable. The Senate Judiciary Committee recommended passage with amendments on an 8-0 vote, indicating unanimous support among those voting in committee. No opposing testimony or recorded floor debate is provided in the materials, and the bill ultimately became law.
The main points of contention, to the extent they can be inferred from the text, would likely center on administrative burden, transparency, and clerk accountability. The bill gives the state treasurer broad authority to request detailed records and policies, which could be viewed as improving oversight but also as increasing reporting obligations for local court clerks. Another possible issue is the reaffirmation that uncollected privilege tax is a debt of the clerk, which may raise concerns about financial exposure for clerks and the courts responsible for collection.
The bill amends Tennessee Code Annotated §§ 40-24-107 and 67-4-605 to expand quarterly reporting and documentation requirements for court clerks regarding privilege taxes, and it clarifies that unpaid privilege tax remains a debt of the clerk. It increases state-level oversight by the commissioner of revenue and state treasurer over collection practices, waiver policies, defendant notices, and third-party collection efforts, while applying these changes to privilege taxes imposed or collected on or after July 1, 2026.
Available legislative history suggests broad support for the measure. The Senate Judiciary Committee advanced the bill unanimously, 8-0, with amendment(s), and there is no record in the provided materials of organized opposition or significant negative debate. The bill’s enactment indicates it was ultimately accepted by both chambers and signed into law.
The likely areas of contention are not explicit in the provided transcripts, but the bill’s expanded reporting obligations could be viewed as burdensome by court clerks and local court systems. The requirement to disclose waiver policies, defendant notification procedures, collection agency use, and other collection methods may raise privacy, administrative, or operational concerns. In addition, the provision reaffirming clerk liability for uncollected privilege tax could be controversial because it places financial responsibility on clerks for amounts not collected and remitted.