HB0156 amends Tennessee tax law to exempt child care agencies from certain taxes and mandates annual tax distribution to counties and municipalities.

HB0156 amends Tennessee Code Annotated, Title 67, Chapter 4, to exempt child care agencies from specific taxes. It adds child care agencies to the list of entities exempt from taxes under § 67-4-708(3)(C). Additionally, it mandates that the state annually allocate and distribute to counties and municipalities an amount equal to the 2023-2024 fiscal year distribution derived from taxes for services performed by child care agencies. This distribution must be made from state sales tax collections before other distributions, effective for tax years ending on or after December 31, 2025.

HB0156 amends Tennessee tax law to exempt child care agencies from certain taxes and mandates annual tax distribution to counties and municipalities.

HB0156 amends Tennessee Code Annotated, Title 67, Chapter 4, to exempt child care agencies from specific taxes. It adds child care agencies to the list of entities exempt from taxes under § 67-4-708(3)(C). Additionally, it mandates that the state annually allocate and distribute to counties and municipalities an amount equal to the 2023-2024 fiscal year distribution derived from taxes for services performed by child care agencies. This distribution must be made from state sales tax collections before other distributions, effective for tax years ending on or after December 31, 2025.