Tennessee SB 1351: Taxes, Sales - As introduced, allocates state sales and use tax revenues from the construction of a uranium processing facility to an eligible industrial development corporation that submits a completed application to the commissioner of finance and administration together with an application fee in an amount established by the department; establishes requirements for such allocation. - Amends TCA Title 67, Chapter 6.

Bill Text

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HOUSE BILL 1359
By Calfee

SENATE BILL 1351
By Yager

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to sales and use taxes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 67, Chapter 6, Part 1, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Economic development project" means a project of an industrial
development board representing either a county where a federally funded project
is located or a city within such county;
(2) "Federally funded project" means a facility that is designed and built
for the processing of uranium and is funded by the United States department of
energy; and
(3) "State tax revenues" means the revenues generated from the
collection of state sales and use taxes from a federally funded project and does
not include any local sales and use taxes.
(b) In order to receive an allocation of state tax revenues under this section, a
county or municipal industrial development corporation must submit a completed
application to the commissioner of finance and administration together with an
application fee in an amount established by the department of finance and
administration. The application must be developed by the department of finance and
administration.
(c) The application must include, but is not limited to, the following information:
(1) A detailed description of the economic development project;

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(2) A description of the financing for the economic development project,
including the total cost of the project;
(3) The number of jobs that the applicant estimates will be created by the
economic development project and the wages, salaries, and other compensation
that will be paid to those persons holding the jobs; and
(4) The estimated development and construction costs of the economic
development project.
(d) The commissioner of finance and administration shall not take any action
with respect to an application until the commissioner has received, as determined by the
commissioner, all information that may be relevant or necessary in determining the
qualifications of the applicant and the proposed economic development project.
(e) Economic development projects must be certified by the commissioner of
finance and administration based on the information provided in the application.
(f)
(1) Notwithstanding the allocations provided for in § 67-6-103(a), the
state tax revenues must be apportioned and distributed to any industrial
development corporation that has submitted an application to the commissioner
of finance and administration and the commissioner has certified the economic
development project. The state tax revenues apportioned and distributed under
this section are for the exclusive use of the industrial development corporation
and must be used solely for the purpose of paying the indebtedness, principal
and interest, and closing costs incurred by the industrial development corporation
in financing the economic development project. The distributions under this
section continue until the federally funded project is complete or the industrial
development corporation receives the full amount requested under subdivision
(c)(2), whichever comes first. The total amount of state tax revenue distributed to

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the industrial development corporation must not exceed twenty million dollars
($20,000,000).
(2) Notwithstanding any provision of this section to the contrary, no
portion of the revenue derived from the increase in the rate of sales and use tax
allocated to educational purposes pursuant to Section 9, Chapter 529 of the
Public Acts of 1992, and no portion of the revenue derived from the increase in
the rate of sales and use tax from six percent (6%) to seven percent (7%)
contained in Section 4, Chapter 856 of the Public Acts of 2002, shall be
distributed to the industrial development corporation for the financing
contemplated in this section. The revenue must continue to be allocated as
provided in Chapter 529 of the Public Acts of 1992, and Chapter 856 of the
Public Acts of 2002, respectively.
(g) The apportionment and distribution of state tax revenues to the industrial
development corporation commences at the beginning of the fiscal year after the first
payment from the United States department of energy of any sales and use taxes
derived from the federally funded project, and is therefore intended to be retroactive.
The department of revenue shall apportion and distribute the state tax revenue to the
industrial development corporation within ninety (90) days of the end of each fiscal year
for which the industrial development corporation is entitled to receive an allocation and
distribution pursuant to this section, or as soon as practicable for distributions that
accrued prior to the effective date of this act.
(h) The fact that an industrial development corporation filed an application with
the commissioner