House Bill 51, sponsored by Keisling, amends various sections of the Tennessee Code Annotated to establish a new framework for the taxation of lottery tickets and shares. The bill introduces a new part under Title 67, Chapter 4, which defines key terms related to lottery operations, including "Commissioner," "Department," "Lottery," "Lottery ticket," and "Share." It mandates that each county levy a five percent (5%) tax on the sales price of lottery tickets or shares sold at retail, in addition to any other taxes imposed on lottery retailers. The bill also outlines the responsibilities of the Commissioner of Revenue in collecting and administering this tax, as well as the registration and remittance processes for lottery retailers.

Additionally, the bill stipulates that two percent (2%) of the collected taxes will be allocated to the Department of Revenue for administrative purposes, with the remainder distributed according to existing regulations. It allows the Tennessee Education Lottery Corporation to share sales information with the Department to facilitate tax administration and grants the Department the authority to promulgate rules for implementing the new tax provisions. The act will take effect upon becoming law for rulemaking purposes, while the tax provisions will be effective starting January 1, 2026.