| 1 | 1 | | |
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| 2 | 2 | | SENATE BILL 24 |
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| 3 | 3 | | By Pody |
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| 4 | 4 | | |
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| 5 | 5 | | HOUSE BILL 963 |
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| 6 | 6 | | By Hawk |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | HB0963 |
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| 10 | 10 | | 000013 |
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| 11 | 11 | | - 1 - |
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| 12 | 12 | | |
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| 13 | 13 | | AN ACT to amend Tennessee Code Annotated, Title 9; |
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| 14 | 14 | | Title 54; Title 55 and Title 67, relative to the |
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| 15 | 15 | | allocation of sales tax revenue for the highway |
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| 16 | 16 | | fund. |
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| 17 | 17 | | |
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| 18 | 18 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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| 19 | 19 | | SECTION 1. Tennessee Code Annotated, Section 67-6-103, is amended by adding the |
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| 20 | 20 | | following as a new subsection: |
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| 21 | 21 | | (v) |
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| 22 | 22 | | (1) As used in this subsection (v): |
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| 23 | 23 | | (A) "Base tax revenues" means the revenues generated from the |
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| 24 | 24 | | collection of state sales tax from the sale, use, consumption, distribution, |
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| 25 | 25 | | or storage for use or consumption of new or used motor vehicles and new |
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| 26 | 26 | | or used tires as of the end of the fiscal year of this state immediately prior |
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| 27 | 27 | | to the year in which the highway fund is entitled to receive an allocation of |
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| 28 | 28 | | tax revenue pursuant to this subsection (v); and |
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| 29 | 29 | | (B) "Motor vehicle" and "tire" have the same meanings as defined |
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| 30 | 30 | | in § 67-4-1602. |
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| 31 | 31 | | (2) Notwithstanding the allocations provided for in subsection (a), on July |
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| 32 | 32 | | 1, 2025, and on July 1 of each subsequent year, an amount of state sales tax |
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| 33 | 33 | | received under this chapter from the sale, use, consumption, distribution, or |
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| 34 | 34 | | storage for use or consumption of new or used motor vehicles and new or used |
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| 35 | 35 | | tires in excess of base tax revenues must be allocated to and deposited in the |
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| 36 | 36 | | |
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| 37 | 37 | | |
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| 38 | 38 | | - 2 - 000013 |
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| 39 | 39 | | |
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| 40 | 40 | | highway fund in an amount equal to the incremental increase in such state sales |
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| 41 | 41 | | tax in excess of base tax revenues. |
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| 42 | 42 | | (3) Notwithstanding this subsection (v) to the contrary, no portion of the |
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| 43 | 43 | | revenue derived from the increase in the rate of sales tax allocated to |
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| 44 | 44 | | educational purposes, pursuant to chapter 529, § 9 of the Public Acts of 1992, |
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| 45 | 45 | | and no portion of the revenue derived from the increase in the rate of sales tax |
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| 46 | 46 | | from six percent (6%) to seven percent (7%), pursuant to chapter 856, § 4 of the |
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| 47 | 47 | | Public Acts of 2002, must be apportioned and distributed pursuant to this |
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| 48 | 48 | | subsection (v). The revenue must be allocated as provided in chapter 529, § 9 of |
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| 49 | 49 | | the Public Acts of 1992, and chapter 856, § 4 of the Public Acts of 2002, |
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| 50 | 50 | | respectively. |
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| 51 | 51 | | SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it. |
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