Taxes, Sales - As introduced, authorizes certain counties to levy a local option sales tax at the rate of 3.75 percent, instead of a maximum of 2.75 percent, if the revenue from the increase in such tax is used by the county exclusively for the construction of a new county jail or to retire debt, including principal and interest and related expenses, on such construction. - Amends TCA Title 67, Chapter 6, Part 7.

HB 308 would allow counties in Tennessee with over 900,000 residents (based on the 2020 census) to raise their local sales tax rate from a maximum of 2.75% to 3.75%. The revenue from this tax increase must be used exclusively for building a new county jail or paying off debt related to jail construction, including principal, interest, and expenses. The higher tax rate would apply for up to eight years or until the jail debt is paid off, whichever comes first. If the debt is paid early, the county must notify the state within 10 days. After the eight-year period or debt payoff, the tax rate would revert to 2.75%.