Amends TCA Title 38; Title 45, Chapter 7; Title 49 and Title 67, Chapter 6.

This bill adds "the transmitting of money from a location originating in this state to a location outside of the United States and its territories by an entity licensed under the Tennessee Money Transmitter Act of 1994," as a service transaction subject to the sales and use tax. This bill provides that the revenue generated from the tax on this service: (1) Must be deposited in a special account in the state general fun to be known as the international money transmission tax fund. Revenues must be retained in the account until such time as the revenues are unencumbered. Revenues are unencumbered on July 1 of each year after the expiration of the refund period described below; (2) May be invested by the state treasurer for the sole benefit of the international money transmission tax fund while encumbered; (3) Is subject to refund upon application made by the individual who paid the tax imposed. The application must be submitted between June 1 and June 30 and include the applicant's social security number or taxpayer identification number in addition to proof of taxes paid and any additional information required by the department; and (4) Must be allocated and distributed on July 1 of each year as follows: (A) 25 percent to all state general fund; (B) 25 percent to all counties and metropolitan governments in this state in the proportion as the population of each county or metropolitan government bears to the aggregate population of the state, according to the latest federal census, to be used for capital improvement projects and infrastructure expenditures; (C) 25 percent to the K-12 education teacher compensation fund (described below); and (D) 25 percent to the Tennessee peace officer standards and training commission to provide an additional pay supplement to law enforcement officers who complete in-service training requirements and received the corresponding pay supplement provided by statute. Additionally, this bill creates the K-12 education teacher compensation fund in the state treasury to be: (1) Used to provide a pool of funds for employee salary increases or bonuses for teachers; (2) Allocated each August 1 to local education agencies throughout the state in accordance with rules promulgated by the department of education; and (3) Allocated by each local education agency for salary increases or bonuses for teachers according to the agency's salary and compensation schedules or bonus program. For rulemaking purposes, this bill will take effect upon becoming law. For all other purposes, this bill will take effect January 1, 2022.