2022 Legislative Summaries
Department of Revenue Extension
Public Chapter 607 extends the Department of Revenue to 2027.
Effective: February 28, 2022
State Tax Lien Order of Superiority
Public Chapter 681 specifies that in addition to deeds of trust, deeds recorded prior to state liens for taxes or fees are superior to the state lien.
Effective Date: March 28, 2022
DOR Report to General Assembly on Administration Cost for Local Sales Tax
Public Chapter 858 requires that on or before January 1, 2023, and on or before January 1 of each subsequent year, the department shall submit a report to the finance, ways and means committees of the Tennessee Senate and the Tennessee House of Representatives outlining the actual costs incurred by the department for the administration and collection of the local option sales tax levied pursuant to this part.
Effective Date: April 14, 2022
Alternating Proprietorship Agreements
Public Chapter 689 authorizes a manufacturer of alcoholic beverages to enter into an alternating proprietorship agreement with one or more manufacturers for the purpose of alternating the use of a bonded or general premises between the manufacturers for the purpose of manufacturing alcoholic beverages, including high alcohol content beer.
Effective March 28, 2022
Common Carrier License
Public Chapter 699 creates a common carrier license, beginning January 1, 2023, to be issued by the alcoholic beverage commission to a person, firm, or corporation that transports goods for a fee and maintains a regularly established schedule of service within this state to transport wine from a winery direct shipper licensee or a fulfillment house licensee to residents of this state.
Effective March 18, 2022
Removal of the Requirement to Send Alcoholic Beverages Invoices to DOR
Public Chapter 714 removes the requirement that every distiller, rectifier, vintner, and importer selling distilled spirits or wines to licensed wholesalers in this state send a duplicate invoice to the commissioner of revenue whenever the alcoholic beverages are originally invoiced to the wholesaler.
Effective Date: March 18, 2022
Self-Distribution
Public Chapter 816 outlines that a manufacturer brewing not more than twenty-five thousand (25,000) barrels of beer or high alcohol content beer, or both, annually and operating as a retailer pursuant to subsection (c) may self-distribute the beer that it manufactures directly to retailers: (A) Inside the county in which the manufacturer is located; or (B) Inside and outside the county in which the manufacturer is located, if the manufacturer: (i) self-distributes not more than one thousand eight hundred (1,800) barrels of such manufacturer's beer annually; and (ii) Is not prohibited from self-distribution in the particular county.
Effective Date: April 8, 2022
Business Tax Wholesaler/Retailer Certificate
Public Chapter 683 requires the Department to make available to a taxpayer that filed a business tax return a certificate that indicates whether the taxpayer reported tax due at the wholesaler or the retailer rate and which the taxpayer can provide to vendors to assist with the administration of business tax.
Effective Date: January 1, 2023
Research & Development Expenditures
Public Chapter 743 specifies that effective for tax years beginning on or after January 1, 2022, Section 174 of the Internal Revenue Code must be applied as it was in effect immediately before the enactment of the Tax Cuts and Jobs Act when computing the excise tax.
Effective Date: March 24, 2022; For tax years beginning on or after January 1, 2022
Certified Green Energy Production Definition Expansion
Public Chapter 1139 expands the definition of a certified green energy production facility to include machinery and equipment used to store electricity for purposes of calculating the minimum franchise tax base and for qualifying for the sales and use tax pollution control credit.
Effective Date: July 1, 2022
TWRA Allocation Changes
Public Chapter 1103 increases from 0.5344 percent to 0.88 percent the portion of the state gasoline tax apportioned for distribution to the wildlife resources fund and specifies the funds must be used for public and environmental infrastructures at marinas.
Effective Date: July 1, 2022
Local Occupancy Tax for Small Metropolitan Governments
Public Chapter 876 authorizes small metropolitan governments with a population less than 25,000, according to the 2020 federal census, to increase their occupancy tax up to an additional 3%.
Effective Date: April 14, 2022
Metropolitan Government with an Enclosed Stadium
Public Chapter 1046 authorizes a county with a metropolitan government that has imposed a privilege tax upon the privilege of occupancy in a hotel to increase their occupancy tax, upon approval by ordinance of the metropolitan council, up to an additional 1% for the exclusive use of paying the debt service for the construction of an enclosed stadium with at least fifty thousand (50,000) seats and for future capital improvements to the enclosed stadium.
Effective Date: May 25, 2022
Quitclaim Deeds
Public Chapter 834 clarifies that in the case of quitclaim deeds, the tax must be based only on the actual consideration given for that conveyance. A deed is treated as a quitclaim deed for taxation purposes if the deed contains language substantially similar to the form for quitclaim deeds as provided for in Tenn. Code Ann. § 66-5-103(2), and only conveys the grantor's interest, whatever that may be, to the grantee.
Effective Date: April 19, 2022
Changes to Professions Subject to Professional Privilege Tax
Public Chapter 1083 eliminates the professional privilege tax for physicians and osteopathic physicians for privilege taxes due and payable after May 31, 2023.
Effective Date: May 27, 2022; For taxes due and payable after May 31, 2023
Auctioneers Removed as Marketplace Facilitator
Public Chapter 783 removes auctioneers, licensed under Title 62, Chapter 19, from the definition of marketplace facilitators.
Effective Date: April 8, 2022
Extension of Retail Accountability Program to July 2025
Public Chapter 887 extends to July 1, 2025, the department’s reporting requirement for certain wholesalers of food, candy, and nonalcoholic beverages relative to the Retail Accountability Program. The public chapter also requires the comptroller to conduct a review prior to November 1, 2024,of the program to determine the effectiveness and efficiency.
Effective Date: April 14, 2022
Tennessee Broadband Investment Maximization Act of 2022
Public Chapter 1102 creates a three-year sales and use tax exemption for purchases and leases of all equipment, machinery, software, ancillary components, appurtenances, accessories, or other infrastructure that is used in whole or in part by broadband communications service providers or internet access service providers to produce broadband communications services and provide internet access. It also requires the department to reimburse municipalities and counties for any loss of revenue resulting from the tax exemption.
Effective Dates: July 1, 2022, to June 30, 2025
Vendor’s Compensation Deduction
Public Chapter 1082 provides a sales and use tax deduction to compensate dealers registered in Tennessee for the accounting and remitting of sales and use tax. The public chapter allows dealers a deduction equal to 2% of the state tax due not to exceed $25 per return. Vendor’s compensation does not apply to local sales tax.
Effective Dates: July 1, 2022, to June 30, 2023
Coins, Currency, and Bullion Exemption
Public Chapter 1092 exempts certain sales of coins, currency, and bullion manufactured from gold, silver, platinum, palladium, and other materials from sales and use tax.
Effective Date: May 27, 2022
Farm Equipment and Machinery Exemption Expansion
Public Chapter 1104 expands the sales and use tax exemption for sales made to qualified farmers and nurserymen. The public chapter rewrites Tenn. Code Ann. § 67-6-207 to replace the previous enumerated list of exempt property by instead specifying that sales and use tax will not be due from the sale at retail, lease, rental, use, consumption, distribution, repair, or storage for use or consumption in this state of tangible personal property, including building material, repair service, labor, warranty, software when primarily used in agricultural operations. The exemption continues to not apply to the sale of automobiles, trucks, household appliances, and gasoline or diesel used in vehicles operated upon the public highways of this state. This public chapter does not exempt tangible personal property, including building material, repair service, labor, warranty, software, or any other item taxable under this chapter from the tax imposed by § 67-6-209 (contractor’s use tax).
Effective Date: January 1, 2023
2022 Sales Tax Holiday for Food and Food Ingredients
Public Chapter 1131 exempts from sales tax the retail sale of food and food ingredients sold between Monday, August 1, 2022, and Wednesday, August 31, 2022.
Effective Date: July 1, 2022
Sales and Use Tax Exemption for Computer Software Developed for Personal Use
Public Chapter 1065 extends the sales and use tax exemption for computer software developed for personal use to include the fabrication, installation, and repair of computer software performed by an agent of the business.
Effective Date: July 1, 2022
Sales Tax Holiday Extensions for Gun Safes and Gun Safety Devices
Public Chapter 1053 extends the sales tax holiday for the retail sale of gun safes and certain gun safety devices until June 30, 2023.
Effective Date: May 25, 2022
County Population Threshold Change for Minor League Baseball Stadium Sales Tax Allocation
Public Chapter 1069 changes from 400,000 to 360,000 the county population threshold that authorizes a municipality with a minor league baseball stadium placed into service between December 31, 2020, and December 31, 2025 to receive and apportion tax revenue derived from the sale of admission to events occurring within the stadium and from all sales of food, drinks, merchandise, and parking sold from a location on the premises of the stadium in conjunction with events occurring within the stadium to be used to pay debt service for the stadium.
Effective Date: May 25, 2022
Base Tax Revenue for Certain TDZ
Public Chapter 1029 excludes the local sales or use taxes collected from dealers with no physical presence in this state from the calculation of the base tax revenue for a tourism development zone that is located in a county without a metropolitan form of government and having a population in excess of five hundred thousand (500,000), according to the 2020 federal census.
Effective Date: July 1, 2022
Certified Green Energy Production Definition Expansion
Public Chapter 1139 expands the definition of a certified green energy production facility to include machinery and equipment used to store electricity for purposes of calculating the minimum franchise tax base and for qualifying for the sales and use tax pollution control credit.
Effective Date: July 1, 2022
Distressed County Deadline Extension for Commercial Development District
Public Chapter 1006 extends the deadline by which a distressed rural county must apply to be eligible to retain the sales and use tax generated from a commercial development district from December 31, 2020 to December 31, 2024.
Effective Date: May 7, 2022
Allocation of Tire Fee to Counties
Public Chapter 746 requires the Commissioner Revenue to send $1.00 per tire sold in a county to that county to be used for beneficial end use or the disposal of the tire.
Effective Date: July 1, 2022
State Registration Fee Waiver
Public Chapter 1143 creates a waiver for the registration fee for a Class A or Class B motor vehicle upon the renewal of the motor vehicle's registration if the renewal occurs during the period of time beginning July 1, 2022 and ending June 30, 2023. The fee waived is the Class A’s registration fee of $16.75, and Class B’s registration fee of $23.75.
Effective Dates: July 1, 2022, to June 30, 2023
Temporary Plate Increase from 30 Days to 60 Days
Public Chapter 734 increases, from 30 days to 60 days, the period a temporary plate issued by a dealer is valid for a motor vehicle. It increases the fee for such plate from $5.50 to $6.50.
Effective Date: July 1, 2022
Design of Registration and License Plates Requirement
Public Chapter 761 requires, beginning January 1, 2023, the design of registration and license plates issued to disabled or wheelchair-confined persons to incorporate the color scheme, base design, and details used on the registration and license plates issued pursuant to Tenn. Code Ann. § 55-4-103.
Effective Date: March 31, 2022
Financial Responsibility Minimum Coverage
Public Chapter 860 increases the minimum amount of insurance coverage from $15,000 to $25,000 for property damage in any one accident that is required for a split-limit motor vehicle insurance policy to qualify as proof of financial security under the financial responsibility law for policies issued or renewed after December 31, 2022.
Effective Date: April 14, 2022
New Special License Plate Omnibus
Public Chapter 968 designates various new specialty license plates including:
- Old Friends Senior Dog Sanctuary
- Memphis/Shelby County Schools Alumni
- USTA Tennessee
- Save Our Smokies
- Historic Maury
- Bays Mountain
- Explore TN
- Knights of Columbus
- Clement Railroad Hotel Museum
- Alcorn State University
- Fisk University
- Physician
- Isaiah 117 House
- Respiratory Therapists
- Honoring Law Enforcement
- Let Freedom Ring
- Improve Hendersonville
- Atlanta Braves
- River Life
- Pancreatic Cancer Awareness
- Back the Blue
- Muse Knoxville
- This public chapter designates various new military license plates including:
- United States Space Force (active, retired, honorably discharged)
- Presidential Service Badge
- Combat Action Badge
- Combat Infantryman Badge
- Combat Medical Badge
This public chapter designates a redesign for the following plate:
- Alpha Psi Alpha
In addition, this public chapter extends until July 1, 2023, the timeframe for meeting the issuance requirement of 1,000 plates for the following license plates:
- Tiger Haven
- TennesSEIA
- African American Breast Cancer Awareness
- Niswonger Children’s Hospital
- Tennessee Chamber of Commerce and Industry
Effective Date: July 1, 2022
Change in County Motor Vehicle Title Fee
Public Chapter 1003 increases the fee paid to county clerks for receiving and forwarding to the department’s motor vehicle division each application for certificate of title from $5.50 to $8.50 and requires that $3.00 of the fee be used by the county for the provision of services directly related to titling and registration.
Effective Date: July 1, 2022
Disclosure of Personal Motor Vehicle Information Prohibited
Public Chapter 1077 removes from the list of authorized disclosures of personal information the ability of the Department of Revenue to share the personal information in certain circumstances even when the department has obtained the express consent of the person to whom the personal information pertains.
Effective Date: May 25, 2022