Tennessee Senate Bill SB2504

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Engrossed: 4/13/26
• Enrolled: 4/29/26
• Passed: 5/19/26
• Chaptered: 5/27/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 4; Title 58 and Title 67, Chapter 4, relative to disaster response.

Summary

SB2504 creates the “Local Disaster Displacement Tax Relief Act” and authorizes counties in Tennessee that have declared a local emergency, or are under a state emergency or disaster declaration, to provide temporary tax relief to county residents who are displaced from their homes because of the emergency or disaster. The relief applies to hotel occupancy taxes and additional privilege taxes imposed under several parts of Tennessee law, including taxes collected from hotels, short-term rental marketplaces, and certain county-specific private acts. The bill allows a county to provide the relief either through a waiver at the point of sale or through reimbursement after taxes are paid. To use the authority, a county must act by resolution of the county legislative body or by executive order of the county executive, set a relief period of no more than 14 days, and establish procedures for residents to verify eligibility and for operators to administer the waiver or reimbursement. The bill also permits reimbursement for lodging in an adjoining county when local vacancy is limited, and it preserves existing penalties for fraudulent claims or improper waivers.

Impact

The bill amends Tennessee Code Annotated § 58-2-110 and affects tax collection rules in Title 67, Chapter 4, as well as county hotel and occupancy tax provisions in Title 7 and private acts. It gives counties new discretionary authority to suspend or reimburse certain lodging-related taxes for displaced residents during declared emergencies, while requiring coordination with the Department of Revenue and tax collectors. The measure primarily affects county governments, hotel operators, short-term rental marketplaces, and residents displaced by disasters.

Sentiment

The bill appears to have received strong support and little visible opposition. It passed the Senate State & Local Government Committee 7-0 and then cleared both floor votes unanimously, including final passage by an 83-0 vote. The voting record suggests broad agreement that the measure is a practical disaster-response tool for local governments.

Contention

The main policy issues in the bill are administrative rather than ideological: how counties will verify that applicants are residents displaced by a declared emergency, how waivers or reimbursements will be processed, and how the relief will be coordinated with hotels, short-term rental marketplaces, and revenue officials. Another point of attention is the bill’s limited duration—no more than 14 days—which may reflect a balance between providing emergency assistance and limiting revenue loss. No major opposition is reflected in the available committee or floor records.