Tennessee House Bill HB2671

Tennessee 2025-2026 Regular Session

• Introduced: 4/16/26
• Refer: 4/21/26

Caption

AN ACT to amend Chapter 91 of the Private Acts of 2008; and any other acts amendatory thereto, relative to a privilege tax on restaurants in the city of Jellico.

Impact

The bill allows Jellico to levy an additional tax, which could have significant implications for local businesses, particularly restaurants. This newly imposed tax on food purchases aims to generate revenue for the municipality, specifically directing all collected funds towards debt service for capital expenditures. This could facilitate necessary developments within the city and support financial obligations, potentially benefiting the overall local economy.

Summary

House Bill 2671 proposes to amend Chapter 91 of the Private Acts of 2008, specifically authorizing the city of Jellico to implement a privilege tax on restaurants. This tax would be capped at 2% of the total sales made by restaurants generating $200,000 or more in sales over the previous year. The city would be required to announce plans for the tax through public notice and hold a public hearing, allowing local residents to comment before any formal adoption of the tax by the municipal legislative body.

Contention

While proponents may argue that this tax provides a crucial revenue stream for local improvements and maintenance, there could be concerns from local restaurant owners regarding the financial burden of the additional tax. Critics may voice their apprehensions regarding the potential for decreased consumer spending in response to the tax, which might lead to a decline in patronage for local dining establishments, ultimately affecting the economic climate in Jellico.