Taxes, Privilege - As enacted, clarifies that all privilege taxes on litigation that clerks of certain courts fail to collect and pay to the department of revenue are debts of the clerks; adds certain reporting requirements. - Amends TCA Title 40 and Title 67.

HB 878 clarifies that when clerks of specific Tennessee courts fail to collect and pay privilege taxes on court litigation, the unpaid amount becomes a personal debt owed by the clerk, not the court. This directly affects clerks handling litigation in courts listed under Tennessee law (e.g., county or circuit courts). The bill amends state code to explicitly state that uncollected privilege taxes are the clerk’s financial obligation, shifting responsibility from the court system. It does not change tax rates or create new taxes, but ensures clerks are accountable for collected funds. The bill is procedural, focusing on clarifying existing tax collection responsibilities.