HB 770 - SB 781
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 3, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
HB 770 - SB 781
SUMMARY OF BILL: Increases, to the extent permissible under federal law, the maximum
gross vehicle weight of a vehicle with an axle group of three axles that can be operated on the public
highways of this state to 85,000 pounds. Requires taxes assessed on freight motor vehicle operators
per excess pounds of weight to be paid within 90 days of the assessment.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES Highway Fund
FY25-26 Up to $59,200,000
Assumptions:
Expenditures to TDOT and Federal Compliance
• Pursuant to Tenn. Code Ann. § 55-7-203(b)(3), the total gross weight of a vehicle operated
on public highways shall not exceed 80,000 pounds. Pursuant to Tenn. Code Ann. § 55-7-
203(c)(4), no axle group of three axles shall carry a load that exceeds 60,000 pounds.
• The proposed legislation increases, to the extent permissible under federal law, the
maximum gross weight of a vehicle with three axles to 85,000 pounds.
• Pursuant to 23 C.F.R. § 658.17, on the National System of Interstate and Defense
Highways, and reasonable access thereto, the maximum gross vehicle weight is 80,000
pounds, except where lower gross vehicle weight is dictated by the bridge formula found in
23 C.F.R. § 658.17(e).
• According to Tennessee Department of Transportation (TDOT), the proposed 85,000-
pound authorization would be in violation of these federal statutes, at least in regard to
travel on the National System of Interstate and Defense Highways and reasonable access
thereto.
• Whether or not the state would be found in noncompliance with these regulations would
ultimately be determined by the Federal Highway Administration (FHWA). Under 23
C.F.R. § 1.36, the FHWA has the authority to withhold federal funds until the
Administration determines the state is in compliance. It is not known whether or when the
FHWA would make such a determination in regard to the proposed legislation or its
implementation.
• According to TDOT, such penalties could amount to 10 percent of the total of relevant
federal funding per fiscal year, pursuant to 23 C.F.R. § 657.19. The potential loss of federal
funding could be an amount up to $132,448,900 in FY25-26 and subsequent years until the
determination is made that the state is back in compliance.
HB 770 - SB 781 2
• However, the legislation includes the condition that such authorization is provided only to
the extent permissible under federal law. It is assumed that the legislation’s provisions will
be implemented by TDOT in coordination with the relevant federal counterparts to ensure
the state remains in compliance. Therefore, this analysis assumes that passage and
implementation of the proposed legislation will not result in a significant loss of any federal
funding.
• There are currently various exceptions to the axle weight limits provided in state law for
specific types of special-purposed trucks for the transport of specific materials, provided
their travel is on non-interstate highways. According to TDOT, some of these exceptions
are subject to approval and/or revocation, potentially including penalties, by the FHWA.
• TDOT is currently under a Plan of Corrective Action with the FHWA for load rating,
primarily due to some of these existing state laws that conflict with federal requirements.
The deadline for TDOT under the current Plan of Corrective Action is December, 2027.
• In this context, passage of the proposed legislation will require a comprehensive new
parametric study to be conducted, and TDOT will be required to conduct further analysis
to load rate all of the state’s non-interstate bridges and culverts, of which there are several
thousand.
• It is understood that such analysis is currently being conducted on these structures as
required by the current Plan of Corrective Action. It is not clear how many such structures
will have been analyzed or reanalyzed at the time of the legislation’s enactment. Those that
have been analyzed as required by the corrective plan will need to be reanalyzed. Those
that have not would have presumably required analysis in the absence of the legislation
because of the requirements of the corrective plan.
• Therefore, the precise of amount of structures that will need reanalysis as a direct result of
this legislation is not entirely clear.
• However, according to TDOT, such analyses could result in expenditures of up to
$56,900,000 from the Highway Fund.
• In addition, the Department will need to replace signage on more than approximately 1,800
bridges indicating the new weight restrictions.
• Taken together, the cost of the parametric study, the extensive statewide load rate analysis
of non-interstate bridges and culverts, and the replacement of signage is estimated to result
in an increase in state expenditures from the Highway Fund of up to $59,200,000 in FY25-
26, as provided by TDOT.
• More detail on the specifics of these estimated fiscal impacts is available upon request.
Tax Provision and Revenue Impacts
• Pursuant to Tenn. Code Ann. § 55-4-113(a)(7), the owner or operator of a freight motor
vehicle is required to pay a registration tax under a declared maximum gross weight. If a
vehicle is found to be in operation when no registration tax has been paid, or is found in
operation at a weight exceeding the limit for which the tax has been paid, the operator shall
be assessed an additional tax of $0.10 on each pound of weight for which no tax has been
paid.
• The proposed legislation requires an operator to pay any such additional tax to the
Department of Revenue (DOR) within 90 days of the tax being assessed.
HB 770 - SB 781 3
• Under current law, vehicles that exceed weight limits are required to obtain overweight
vehicle permits from the DOR. Increasing the weight limit for tridem axle vehicles may
reduce the overall number of permits being issued, thus leading to a decrease in revenue.
• If vehicles exceed the new weight limit, however, and are assessed additional weight-based
fees, the revenue from excess weight taxation could offset the decline in overweight permit
revenue.
• Additionally, heavier vehicles typically require more fuel. The additional fuel consumption
from increased weight limits may result in a modest increase in fuel tax revenue.
• Based on information provided by the DOR, it is estimated that any resulting decreases in
revenue from overweight vehicle permits will be offset by increases in additional weight
fees and fuel tax revenue. Therefore, any impact is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director