Taxes, Business - As introduced, exempts child care agencies from business tax; requires the state to annually allocate the amount of such taxes derived from child care services and received from counties and municipalities in the 2023-2024 fiscal year. - Amends TCA Title 67, Chapter 4.

HB 156 exempts child care agencies from Tennessee's business tax and requires the state to annually return tax revenue collected from these services to local counties and municipalities. Specifically, starting in the 2024-2025 fiscal year, the state must allocate to local governments an amount equal to what they received in 2023-2024 from child care tax collections. The bill amends tax code to add child care agencies as an exempt category and mandates this revenue sharing from state sales tax collections, excluding funds from the 2002 sales tax rate increase. This directly affects child care agencies (by removing their tax burden) and local governments (by guaranteeing annual revenue).