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HB 521

Taxes, Privilege - As introduced, reduces the rate of tax on bottled soft drinks and barrels of beer; changes the distribution of the revenue from such taxes; provides for the eventual repeal of such taxes. - Amends TCA Title 57, Chapter 5 and Title 67, Chapter 4.

114th Regular Session (2025-2026) Introduced by Jay Reedy

HB 521 lowers Tennessee's excise taxes on soft drinks and beer, restructures tax revenue distribution, and phases out these taxes entirely over time.

P2C, ref. to Finance, Ways, and Means Committee
#privilege #taxes
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Bill Summary · HB 521

Legislative bill overview

HB 521 reduces Tennessee's excise tax rates on bottled soft drinks and beer barrels while restructuring how the resulting tax revenue is distributed among state programs. The bill also establishes a timeline for the eventual complete repeal of these taxes.

Why is this important

These excise taxes currently generate revenue for various state functions and programs. Reducing and eliminating these taxes will decrease state revenue while potentially lowering consumer costs on these beverages, but the bill's redistribution mechanism and repeal timeline will determine which programs gain or lose funding.

Potential points of contention

  • Revenue loss impact: Removing these taxes entirely will create a budget shortfall that must be addressed through spending cuts or other revenue sources
  • Regressivity concerns: Excise taxes on beverages disproportionately affect lower-income consumers, so reducing them benefits wealthier buyers more in absolute dollar terms
  • Program funding uncertainty: The bill's revenue redistribution details are not specified in this summary, raising questions about which state services will be affected and by how much

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

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