Senate Bill 36 amends Tennessee Code Annotated to provide tax exemptions for child care agencies. Specifically, it adds a new subdivision to Section 67-4-708(3)(C) that defines child care agencies as per Section 71-3-501, thereby expanding the list of entities eligible for tax exemptions. Additionally, the bill modifies the existing language in Section 67-4-708(3)(C) by updating the range of subdivisions from (3)(C)(i)-(xvi) to (3)(C)(i)-(xvii) to include the newly added child care agencies.

Furthermore, the bill introduces a new subsection to Section 67-4-724, which mandates that during the 2024-2025 fiscal year and subsequent years, the state must allocate and distribute to counties and municipalities an amount equivalent to what was distributed in the 2023-2024 fiscal year from taxes collected for services provided by child care agencies. This distribution will be made from state sales tax collections before any other distributions, with the exception of revenue from a specific increase in sales tax rates established in previous legislation. The act will take effect upon becoming law and will apply to tax years ending on or after December 31, 2025.

Statutes affected:
Introduced: 67-4-708(3)(C), 67-4-708, 67-4-724