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.

SB 337 allows Tennessee counties with populations over 900,000 (per the 2020 census) to temporarily increase their local sales tax rate from 2.75% to 3.75% for up to eight years. The additional revenue must be used exclusively for constructing a new county jail or paying off debt related to such construction. If the jail debt is paid off early, the tax rate reverts to 2.75% immediately. After the temporary period, counties must allocate revenue from the 2.75% tax rate to fund sheriff's department operations (in addition to existing funding), not for other purposes.