WeVote
Log In

Bill

Bill

HB 51

Lottery, Corporation - As introduced, requires each county to levy a tax at the rate of 5 percent of the sales price of lottery tickets or shares when sold at retail within the jurisdiction of the county; requires the state to administer the collection of the tax. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 9; Title 49 and Title 67.

114th Regular Session (2025-2026) Introduced by Kelly Keisling

Tennessee would impose a 5 percent county sales tax on lottery tickets, with state-administered collection sending revenue to local governments where tickets are sold.

Assigned to s/c Departments & Agencies Subcommittee
#corporation #lottery
0
WeVote Research Nonpartisan
Bill Summary · HB 51

Legislative bill overview

HB 51 would impose a mandatory 5 percent tax on all lottery ticket sales at the county level in Tennessee, with the state responsible for administering collection. The revenue generated would flow to counties where tickets are sold, potentially creating a new source of local government funding.

Why is this important

This represents a significant shift in how lottery revenues are distributed in Tennessee, redirecting a portion of sales directly to county governments rather than current beneficiaries. It could generate millions in additional county revenue but would effectively increase the cost of lottery participation for consumers.

Potential points of contention

  • Regressive tax impact: Lottery participation rates are higher among lower-income households, making this effectively a regressive tax that disproportionately affects those with fewer resources
  • Administrative complexity: Requiring state administration of county-specific tax collection across multiple jurisdictions creates compliance and enforcement challenges
  • Revenue displacement concerns: Unclear whether this revenue supplements or replaces existing lottery allocations to education, veterans, or other state programs
  • Lottery retailer burden: Retailers must implement new tax collection mechanisms, potentially affecting participation rates and small business compliance costs
  • Constitutional questions: May conflict with existing Tennessee lottery statutes and the specific purposes for which lottery revenues are currently dedicated

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.