TBA Law Blog


Posted by: Stacey Shrader Joslin on Jun 11, 2026

A law passed by the Tennessee General Assembly during the recent legislative session imposes a tax on international financial transfers. Months before the law is set to take effect, an association of financial technology institutions — which includes PayPal and SoFi — has filed a lawsuit that challenges its constitutionality. “This law raises taxes on Tennessee consumers, businesses, and non-profits, and contradicts recently passed federal law while also running afoul of the Foreign Commerce Clause in the U.S. Constitution,” Financial Technology Association President and CEO Penny Lee said, at the time the law was passed. The Nashville Banner reports on the suit.