Tennessee Senate Bill SB1200

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 49; Title 58; Title 68 and Title 71, relative to veterans.

Summary

SB1200 amends Tennessee law governing the distribution of privilege tax revenue collected under Tennessee Code Annotated § 4-49-104(e). The bill changes the allocation formula so that 4% of the privilege tax continues to go to the Department of Mental Health and Substance Abuse Services, while 1% is newly directed to the Department of Veterans Services. The veterans-services allocation is to be used to support veterans services in Tennessee. The bill is narrow in scope and does not create a new tax or change the underlying privilege tax itself; instead, it redirects a portion of existing revenue to a veterans-related purpose. It takes effect July 1, 2025, and would amend the state’s statutory revenue distribution framework to add a dedicated funding stream for veterans services.

Impact

SB1200 would amend Tennessee Code Annotated § 4-49-104(e) to require that 1% of the privilege tax collected under that section be allocated to the Department of Veterans Services, while preserving the 4% allocation to mental health and substance abuse services. The practical effect is to create a recurring, earmarked source of state funding for veterans services without altering the tax rate or imposing a new tax burden. The bill affects the state treasury, the council responsible for distributing the tax, and the Department of Veterans Services as the recipient agency.

Sentiment

Based on the available record, the bill appears to have a generally supportive and noncontroversial posture, with no recorded committee debate, votes, or opposition in the provided materials. Its purpose is straightforward and framed around support for veterans, which typically draws favorable sentiment. Because there are no transcripts or vote tallies, however, the level of consensus cannot be measured beyond the absence of documented objection.

Contention

No specific points of contention are documented in the provided materials. The only potentially sensitive issue is the reallocation of a portion of privilege tax revenue, which could raise questions about competing funding priorities between veterans services and other state programs, including mental health and substance abuse services. In the absence of committee discussion or votes, there is no evidence of organized opposition or disagreement from any particular stakeholder group.