House Bill 2135, also known as the "Tennessee Live Music Support Act," introduces a new part to the Tennessee Code Annotated, specifically under Title 67, Chapter 6. This legislation defines key terms related to live music events, including "live music and performance event," "live music support," "secondary ticketing market," "third-party ticket reseller," and "ticket." The bill mandates a live music support surcharge of five percent (5%) on the sales price of all tickets sold through the secondary ticketing market for live music and performance events in Tennessee, effective July 1, 2027. Third-party ticket resellers are responsible for collecting and remitting this surcharge to the Department of Revenue, which will also oversee the administration of the funds collected.

The funds generated from this surcharge will be deposited into the live music and performance venue fund and are designated for economic development support grants for live music venues, promoters, and performers. The bill also outlines penalties for third-party ticket resellers who fail to comply with the collection and remittance of the live music support. Additionally, the Department of Revenue is authorized to create rules to implement this part in accordance with the Uniform Administrative Procedures Act. The act will take effect upon becoming law for rule promulgation purposes, while the collection of the live music support will commence on July 1, 2027.