Tennessee House Bill HB1974

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/25/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 9; Title 54; Title 55 and Title 67, relative to the allocation of sales tax revenue for the highway fund.

Impact

The implications of HB1974 are significant, primarily affecting how sales tax revenues are distributed in Tennessee. By diverting specific revenues to the highway fund, the legislation aims to stabilize and potentially increase funding for transportation projects. This targeted funding could help address ongoing challenges in maintaining and upgrading the state's highway system and support more robust infrastructure, which is essential for economic activity and public safety.

Summary

House Bill 1974 seeks to amend the Tennessee Code Annotated in several titles concerning the allocation of sales tax revenue specifically for the highway fund. The bill mandates that revenues from the sale, use, consumption, distribution, or storage of new or used motor vehicles and tires, effective from July 1, 2024, be directed entirely to the highway fund. This decision is part of a broader move to enhance funding for infrastructure, particularly highway maintenance and construction as state demands grow.

Contention

While the bill does have strong support, especially among those advocating for improved infrastructure, there are points of contention regarding its financial implications for other state services. Critics argue that this reallocation might detract from funds traditionally available for education or social services, particularly since it removes certain revenues from the general fund. This has sparked debates among lawmakers about the appropriate balance of resources and prioritization of state funding.

Additional_notes

As for the legislative process, details regarding voting history of HB1974 provide insight into its reception among members of the General Assembly. The bill's progression will reflect the priorities of the legislature and state governance, particularly with regards to infrastructure and revenue management.