Senate Bill 763, also known as House Bill 868, proposes an amendment to the Tennessee Code Annotated regarding sales and use taxes. The bill introduces a new section, 67-6-358, which exempts the sale of official Tennessee state flags and United States flags from the sales tax. However, this exemption does not extend to miniature flags or flags that are sold as souvenirs, novelties, decorations, or toys.

The bill is set to take effect on July 1, 2023, emphasizing the public welfare as a reason for its implementation. This legislative change aims to support the sale of official state and national flags while maintaining tax obligations on other types of flags.