ON APRIL 22, 2024, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2074, AS AMENDED.
AMENDMENT #1 rewrites the bill to make the additions described below to the present law relevant to exemptions from sales and use tax for natural disaster claimants.
Present law requires a claimant to be entitled to a refund equal to the total amount of Tennessee state and local sales and use tax paid by the claimant to one or more retailers as a result of the claimant's purchases of major appliances, residential furniture, or residential building supplies from such retailers. However, the total amount refunded in connection with any one residence must not exceed $2,500. To receive a refund, a claimant may file only one natural disaster claim for refund with the department of revenue ("department"), and must file such claim for refund within one year from the date shown on the FEMA decision letter received by the claimant. The claimant must also certify on the natural disaster claim for refund form that purchases for which the refund is claimed were to replace, repair or restore property damaged in a federally declared natural disaster occurring in Tennessee. Auch refund must be made by the department directly to the claimant and must not be made by the retailer to the claimant. All natural disaster claims for refund shall include satisfactory proof of receipt of federal disaster assistance.
Present law requires each claimant to keep and preserve suitable records of the purchases for which a refund is claimed. Such records must be kept and preserved for a period of three years from December 31 of the year in which the natural disaster claim for refund was filed. Such records must be open to the inspection of the commissioner, or the duly authorized delegates of the commissioner, at all reasonable hours. The commissioner of revenue has the authority to conduct audits or require the filing of additional information necessary to substantiate the amount of any refund due to the claimant.
Present law authorizes the department to assess a civil penalty not to exceed $25,000 against any person that knowingly files a false or fraudulent application for refund. Any claimant that is assessed a penalty must be entitled to the remedies provided in existing law. All refunds must be paid from the state's general fund.
This amendment provides that the above present law applies to all refund claims in connection with a primary residence under this amendment; except, that:
(1) A claimant is not required to include proof of receipt of federal disaster assistance;
(2) The claimant must file the claim for a refund by November 1, 2024; and
(3) The natural disaster certified by the claimant is not required to be a federally declared natural disaster.
This amendment requires the claimant to certify that the primary residence was damaged or destroyed by a tornado that occurred during the period of April 1, 2024, to April 3, 2024, in Morgan County, or in a municipality located within such county.
As used in this amendment, a "claimant" means a natural person whose primary residence was damaged or destroyed as a result of a natural disaster that occurred during the period of April 1, 2024, to April 3, 2024, in Morgan County, or in a municipality located within such county.

Statutes affected:
Introduced: 67-4-718(b), 67-4-718
Amended with HA1064 -- 04/22/2024: 67-4-718(b), 67-4-718, 67-6-396