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HB 193

Taxes, Exemption and Credits - As introduced, exempts from the sales and use tax the purchase of a motor vehicle that is registered in this state by a qualifying member of the Tennessee national guard; applies the sales tax exemption only to the first $15,000 of the sales price and only to one vehicle sold to such individual within a five-year period. - Amends TCA Title 67, Chapter 6, Part 3.

114th Regular Session (2025-2026) Introduced by Renea Jones

Exempts Tennessee National Guard members from sales tax on one vehicle purchase up to $15,000 every five years, reducing state revenue with unclear fiscal impact.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#exemptionandcredits #taxes
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Bill Summary · HB 193

Legislative bill overview

HB 193 would exempt Tennessee National Guard members from sales and use tax when purchasing a motor vehicle registered in the state. The exemption applies only to the first $15,000 of the purchase price and covers only one vehicle per individual within any five-year period.

Why is this important

This bill directly affects active Tennessee National Guard members' purchasing power by reducing the effective cost of vehicle ownership. It represents a financial benefit targeting a specific public service population, with real implications for the state's tax revenue and precedent for similar exemptions.

Potential points of contention

  • Revenue impact: Exempting vehicle purchases reduces state sales tax revenue; the bill doesn't specify projected fiscal cost or how it would be offset
  • Scope limitations: The $15,000 cap and one-vehicle-per-five-years restriction raises questions about fairness—why these specific thresholds rather than others, and whether they adequately serve the intended population
  • Precedent concerns: Approving service-based tax exemptions may create pressure for similar exemptions for other public servants (firefighters, police, teachers) or veteran populations, potentially fragmenting the tax base

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

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