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HB 1801

Motor Vehicles, Titling and Registration - As introduced, exempts from the sales and use tax the sale of a motor vehicle to an active-duty military service member who is a resident of this state and stationed out-of-state. - Amends TCA Section 67-6-303.

114th Regular Session (2025-2026) Introduced by Greg Vital

Tennessee would exempt active-duty military residents stationed out-of-state from sales tax on vehicle purchases, reducing state revenue while providing targeted relief to military personnel.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#motorvehicles #titlingandregistration
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Bill Summary · HB 1801

Legislative bill overview

HB 1801 would exempt active-duty military service members who are Tennessee residents but stationed out-of-state from paying sales and use tax when purchasing motor vehicles in Tennessee. The bill modifies Tennessee Code Annotated Section 67-6-303 to create this tax exemption for a specific military population.

Why is this important

Military service members often face financial strain from frequent relocations and dual housing costs. This exemption could provide meaningful tax savings (typically 9.55% in Tennessee) on vehicle purchases, which are substantial expenses. However, it also represents foregone state revenue that must be offset elsewhere or absorbed by the state budget.

Potential points of contention

  • Revenue impact and fairness: The bill creates a tax exemption that reduces state revenue; critics may question whether this benefit should apply only to out-of-state stationed members or all military, and whether other groups (veterans, first responders) deserve similar treatment
  • Scope and administration: The language specifies "active-duty" and "residents stationed out-of-state," but questions arise about how Tennessee verifies military status, residency, and duty station location, and whether this creates administrative burden
  • Precedent and expansion: Establishing military-specific tax exemptions may invite similar requests from other employment sectors or groups, potentially fragmenting the tax base further

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

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