HB 2502

Present law levies a tax on the sales price of certain, specifically described, services. This bill adds the transmitting of money from a location originating in this state to a location outside of the United States or its territories by an entity licensed under the Money Transmission Modernization Act to the services that are subject to such a tax. INTERNATIONAL MONEY TRANSMISSION TAX FUND This bill requires revenues from the tax as described above to be deposited in a special account in the state general fund, called the international money transmission tax fund. All revenue must be retained in this account until the revenue is unencumbe red. This bill provides that the revenue becomes unencumbered on July 1st of each year after the expiration of the application period for a refund, as described below. Refunds This bill requires revenues generated from the tax as described above to be subject to a refund upon an application from the individual who paid the tax. Such an application must be submitted to the department of revenue between June 1 st and June 30 th and include the applicant's social security number or taxpayer identification number and proof of the taxes paid. Allocation of Funds This bill requires unencumbered funds remaining in the international money transmission tax fund to be allocated and distributed on July 1 st of each year. Twenty-five percent of the funds must be allocated to the state general fund; 25% must be allocated to all counties and metropolitan governments in this state, in proportion with population, to be used for capital improvement projects and i nfrastructure expenditures; and 25% must be allocated to the Tennessee peace officer standards and training commiss ion to provide an additional pay supplement to law enforcement officers who complete in-service training requirements. K-12 Education Teacher Compensation Fund This bill establishes the K-12 education teacher compensation fund to be used to provide a pool of funds for employee salary increases or bonuses for teachers. Monies in the K-12 education teacher compensation fund must be allocated each August 1st to l ocal education agencies throughout the state. This bill requires the remaining 25% of the unencumbered funds from the international money transmission tax fund to be allocated to this fund on July 1st of each year. RULEMAKING This bill authorizes the department of education to promulgate rules with regard to the K-12 education teacher compensation fund.