House Bill 51 amends the Tennessee Code Annotated to establish a new part concerning the taxation of lottery tickets and shares. It introduces definitions for key terms such as "Commissioner," "Department," "Lottery," "Lottery ticket," and "Share." The bill 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 Commissioner of Revenue is tasked with collecting and administering this tax, while lottery retailers are required to register with the Department of Revenue for tax collection and remittance.

The bill outlines the process for tax remittance, stating that the tax is due monthly, and lottery retailers must report their gross sales to the Commissioner. It also specifies that two percent (2%) of the collected taxes will be allocated to the Department for administration, with the remainder distributed as per existing regulations. Additionally, the Tennessee Education Lottery Corporation is required to share sales information with the Department to facilitate tax administration. The act will take effect upon becoming law for rulemaking purposes, while other provisions will be effective starting January 1, 2026.