Banks and Financial Institutions - As enacted, clarifies that the service of transmitting money from a location originating in this state to a location outside of the United States or its territories is a taxable service and that such a tax is generally levied on the amount of money transmitted; requires revenues generated from such a tax to be allocated to certain funds and purposes. - Amends TCA Title 4; Title 38; Title 39; Title 45; Title 47; Title 49 and Title 67.

SB 2166 would require licensed money transmitters in Tennessee (like Western Union or similar services) to pay sales tax on money sent from Tennessee to locations outside the U.S. or its territories. The tax revenue would be split equally: 25% to the state general fund, 25% to counties for infrastructure projects based on population, 25% to a new fund for K-12 teacher salary increases, and 25% to a law enforcement training supplement fund. The tax would apply to transactions starting January 1, 2027, if the bill becomes law. This directly affects businesses that handle cross-border money transfers within Tennessee.