Senate Bill 2166 and House Bill 2502 propose amendments to the Tennessee Code regarding money transmission. The bills introduce a new taxable service for transmitting money from Tennessee to locations outside the United States, specifically by entities licensed under the Money Transmission Modernization Act. The tax is set at a flat rate of $10 per transaction, with an additional 2% on amounts exceeding $500. The bills also clarify that this service is exempt from local option taxes and outline the allocation of generated revenues, which will be distributed monthly to various state funds, including the state general fund, TennCare buyback fund, promising futures fund, and a teacher internship fund.

Additionally, the bills amend existing legal language to ensure that revenues from this new tax are retained in a special account until unencumbered and specify the conditions under which refunds can be requested by taxpayers. The effective date for the rules and forms is immediate upon becoming law, while the broader provisions will take effect on January 1, 2027. The legislation aims to enhance funding for education, child care initiatives, and law enforcement while regulating the money transmission industry more effectively.

Statutes affected:
Introduced: 67-6-205(c), 67-6-205, 67-6-205(b)
Amended with HA0729 -- 04/09/2026: 67-6-205(c), 67-6-205, 67-6-205(b)
Amended with HA0729, SA1038 -- 04/16/2026: 67-6-205(c), 67-6-205, 67-6-205(b), 67-6-903