Tennessee House Bill HB0507

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23
• Refer: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 9; Title 54 and Title 67, relative to over-collections.

Impact

The implementation of HB 0507 is anticipated to centralize financial resources for significant infrastructure projects, providing a more structured approach to funding state initiatives. By ensuring that a percentage of state revenue over-collections is directed into this fund annually, the bill seeks to bolster the state’s ability to finance necessary public works. This realignment of financial resources is expected to enhance economic growth through improved infrastructure, thus benefiting citizens and businesses alike by facilitating better transportation and public services.

Summary

House Bill 0507 aims to amend various sections of the Tennessee Code Annotated concerning the management of over-collections in state tax revenue. This bill establishes an infrastructure and building fund as a reserve account within the state general fund. The funds accumulated in this account will specifically be allocated toward infrastructure projects such as road maintenance, capital improvements, and other essential public utility developments. The legislation ensures that these funds are only accessible through the general assembly's approval, thereby promoting legislative oversight on their utilization.

Sentiment

The sentiment around HB 0507 appears largely positive among those who view the establishment of a dedicated fund for infrastructure as a necessary step towards effective state governance. Advocates have highlighted the importance of sustainable fund allocation for capital improvement projects, which can lead to long-term economic benefits. However, there are concerns among some legislators about over-reliance on fluctuating tax revenues, which could affect the state’s budget stability if not managed prudently.

Contention

There is notable contention regarding how the bill defines 'over-collections' and the stipulations for using the funds. Critics argue that tying infrastructure funding directly to over-collections may lead to unpredictability in the availability of funds for crucial projects, especially in times of economic downturn. Furthermore, discussions around how to balance the state's budget while also ensuring infrastructure needs are met will continue to be a point of debate as lawmakers assess the fiscal implications of the bill.