Tennessee House Bill HB2502

Tennessee 2025-2026 Regular Session

• Introduced: 2/3/26
• Refer: 2/5/26
• Refer: 3/11/26
• Refer: 3/18/26
• Refer: 3/25/26
• Refer: 3/31/26
• Engrossed: 4/9/26
• Enrolled: 4/28/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 38; Title 39; Title 45; Title 47; Title 49 and Title 67, relative to money transmission.

Impact

The bill outlines a structured approach for the distribution of funds collected from the money transmission tax. Specifically, it mandates that the revenue be deposited into the international money transmission tax fund and subsequently distributed on a yearly basis. The allocations include 25% to the state general fund, 25% to counties for infrastructure projects, 25% to a K-12 education teacher compensation fund, and the final 25% to support additional pay supplements for law enforcement officers who complete required in-service training.

Summary

House Bill 2502 aims to amend several titles within the Tennessee Code Annotated, including provisions related to money transmission. One of the key components of the bill is the establishment of an international money transmission tax fund. This fund seeks to collect revenue from money transmissions originating in Tennessee to locations outside of the United States. This initiative reflects the state's intention to regulate and benefit from these transactions while creating a specific mechanism for fund allocation and usage.

Contention

However, the bill has sparked discussions about the implications of such a tax. Some stakeholders argue that the new tax could place an undue burden on businesses engaged in money transmission, possibly impacting their operational costs. There are also concerns regarding the effectiveness of the allocated funds in truly enhancing teacher compensation and supporting infrastructure improvements. The opposition raises questions about whether the bill adequately addresses the needs of districts and communities that may be affected by these changes in funding and regulation.