A provision in Tennessee's 2024 tax bill redirects sales tax revenue from certain retailers to pay off public venue debt—potentially for 30 years.
Most Tennessee retail owners don't realize that a tax provision buried in SB2633 could redirect the sales tax they collect away from state and local services and toward paying off a performance venue's debt instead.
Here's what happened and why it matters to your business.
SB2633, signed into law on May 21, 2024, amended Tennessee's tax code (specifically TCA § 67-6-103, found in Section 3 of the bill). One provision creates a mechanism to redirect sales and use tax revenue collected by businesses operating on or adjacent to a qualifying performance venue.
Instead of that tax money flowing into the state treasury and local government budgets as it normally would, it gets diverted to a public entity for the purpose of retiring the venue's debt. This redirection can continue for up to 30 years from the end of the venue's construction or renovation period.
The provision targets small businesses in specific locations: food and beverage vendors, retailers, parking operators, and other merchants operating on or near a qualifying performance venue. If your business falls into this category and is located within the affected zone, all state and local sales and use taxes you collect could be redirected—not returned to you, but sent to the venue's debt fund instead.
The practical impact is significant. Sales tax revenue that would normally support schools, roads, emergency services, and other public infrastructure in your area gets allocated to venue debt repayment instead. This happens automatically once the provision takes effect and continues for the duration of the debt retirement period or 30 years, whichever comes first.
For retailers, this is important context for understanding how local tax policy affects your community's services and your operating environment. It also means the tax dollars your business collects may not return to support the local infrastructure and services your business depends on.
SB2633 became effective upon being signed into law on May 21, 2024. The sales tax redirection provision applies immediately and continues until either the venue's debt is fully retired or 30 years have elapsed from the end of the venue's construction or renovation period—whichever comes first.
The specific legal amendment is found in Section 3 of the bill, which modifies TCA § 67-6-103.
If your business operates near a performance venue in Tennessee, understanding this provision helps you anticipate how local revenue flows may change and how that could affect public services in your area. For a detailed breakdown specific to your location and business type, contact your local chamber of commerce or business association.
Source: SB2633, signed May 21, 2024; Section 3, amending TCA § 67-6-103.