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New Tennessee law changes how sales tax revenue is handed out — and it’s affecting Memphis suburbs

By  and , Daily Memphian Updated: June 22, 2026 11:03 AM CT | Published: June 22, 2026 4:00 AM CT

Suburban budgets looked a little different this year as the State of Tennessee changed the calculations it uses to disburse sales tax revenue to municipalities.

A law that took effect in January affected the way state funds are distributed, and the federal census at the start of a decade is not the metric unless it’s a year in which data from the decennial census is released. 

Up through the 2026 fiscal year budgets, municipalities were given the same amount of state-shared revenue based on the most recent census. Cities and towns could get more if they conducted a special census showing significant population growth.

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Abigail Warren

Abigail Warren

Abigail Warren is an award-winning reporter and covers Collierville and Germantown for The Daily Memphian. She was raised in the Memphis suburbs, attended Westminster Academy and studied journalism at the University of Memphis. She has been with The Daily Memphian since 2018.

Michael Waddell

Michael Waddell

Michael Waddell is a native Memphian with more than 20 years of professional writing and editorial experience, working most recently with The Daily News and High Ground News.


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