SB1081 amends Tennessee sales tax law to allow dealers to hold collected sales tax longer to offset transaction fees.

SB1081 amends Tennessee Code to establish a sales tax remittance schedule allowing dealers to hold collected sales tax longer. This holding period is intended to offset transaction fees associated with credit and debit card sales. The holding time is determined by the state's total sales tax remittance, the percentage of credit and debit card transactions, state fees for such transactions, and the federal funds rate. The commissioner will monitor this holding time biannually. This change does not alter current sales tax collection and remittance processes.

SB1081 amends Tennessee sales tax law to allow dealers to hold collected sales tax longer to offset transaction fees.

SB1081 amends Tennessee Code to establish a sales tax remittance schedule allowing dealers to hold collected sales tax longer. This holding period is intended to offset transaction fees associated with credit and debit card sales. The holding time is determined by the state's total sales tax remittance, the percentage of credit and debit card transactions, state fees for such transactions, and the federal funds rate. The commissioner will monitor this holding time biannually. This change does not alter current sales tax collection and remittance processes.