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.

SB 36 exempts child care agencies from Tennessee's business tax and requires the state to annually return to counties and municipalities the exact amount of tax revenue collected from child care services in the 2023-2024 fiscal year. This applies to taxes collected under Title 67, Chapter 4 of Tennessee law, specifically for services provided by child care agencies defined in §71-3-501. The allocated funds must come from state sales tax collections before other distributions, excluding revenue from Tennessee's 2002 sales tax rate increase. The bill affects child care agencies (by removing their tax burden) and local governments (which receive the redistributed funds), effective for tax years ending December 31, 2025, or later.