| 1 | 1 | | |
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| 2 | 2 | | HOUSE BILL 127 |
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| 3 | 3 | | By Lamberth |
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| 4 | 4 | | |
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| 5 | 5 | | SENATE BILL 1307 |
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| 6 | 6 | | By Johnson |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | SB1307 |
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| 10 | 10 | | 001206 |
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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, Section |
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| 14 | 14 | | 67-3-901 and Title 67, Chapter 4, Part 32, relative |
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| 15 | 15 | | to local tax surcharges. |
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| 16 | 16 | | |
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| 17 | 17 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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| 18 | 18 | | SECTION 1. Tennessee Code Annotated, Section 67-3-901, is amended by inserting |
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| 19 | 19 | | the language ", surcharges levied pursuant to chapter 4, part 32 of this title," immediately after |
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| 20 | 20 | | the language "except bond issues" in subsections (d) and (m). |
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| 21 | 21 | | SECTION 2. Tennessee Code Annotated, Title 67, Chapter 4, Part 32, is amended by |
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| 22 | 22 | | deleting the language "transit improvement" wherever it appears and substituting instead |
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| 23 | 23 | | "transportation improvement". |
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| 24 | 24 | | SECTION 3. Tennessee Code Annotated, Section 67-4-3201, is amended by deleting |
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| 25 | 25 | | the section and substituting instead: |
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| 26 | 26 | | (1) "Implementing agency" means any public transit agency, regional |
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| 27 | 27 | | transportation authority created under title 64, chapter 8, or other local government |
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| 28 | 28 | | department, agency, or designated entity that is responsible for planning or |
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| 29 | 29 | | implementing a transportation improvement program; |
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| 30 | 30 | | (2) "Local government" means: |
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| 31 | 31 | | (A) Any county in this state, including any county having a metropolitan |
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| 32 | 32 | | or consolidated form of government; or |
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| 33 | 33 | | (B) Any incorporated city or town in this state; |
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| 34 | 34 | | (3) "Surcharge" means a tax, or combination of taxes, levied by a local |
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| 35 | 35 | | government pursuant to this part; and |
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| 36 | 36 | | |
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| 37 | 37 | | |
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| 38 | 38 | | - 2 - 001206 |
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| 39 | 39 | | |
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| 40 | 40 | | (4) "Transportation improvement program" means a program consisting of |
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| 41 | 41 | | specified transportation system projects and services, including, but not limited to, public |
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| 42 | 42 | | transit system, highway, and bridge projects. |
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| 43 | 43 | | SECTION 4. Tennessee Code Annotated, Section 67-4-3205, is amended by deleting |
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| 44 | 44 | | the language "public transit system" wherever it appears and substituting instead |
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| 45 | 45 | | "transportation". |
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| 46 | 46 | | SECTION 5. Tennessee Code Annotated, Section 67-4-3206, is amended by deleting |
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| 47 | 47 | | the language "public transit system" wherever it appears and substituting "transportation". |
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| 48 | 48 | | SECTION 6. Tennessee Code Annotated, Title 67, Chapter 4, Part 32, is amended by |
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| 49 | 49 | | adding the following as a new, appropriately designated section: |
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| 50 | 50 | | Notwithstanding another law to the contrary, a local government is eligible to collect, |
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| 51 | 51 | | receive, and administer proceeds of a surcharge levied under this part only if it appropriates |
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| 52 | 52 | | and allocates funds for road purposes from local revenue sources in an amount not less than |
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| 53 | 53 | | the average of the five (5) preceding fiscal years; except, that bond issues, federal revenue |
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| 54 | 54 | | sharing proceeds, and surcharges levied pursuant to this part must be excluded from the five- |
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| 55 | 55 | | year average computation. If a local government fails after July 1, 2025, to so appropriate and |
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| 56 | 56 | | allocate at least such average amount for road purposes, then the amount of revenues that |
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| 57 | 57 | | would otherwise be allocable to such local government under this part must be reduced by the |
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| 58 | 58 | | amount of the decrease below such average. The amount of the funds not allocated to the |
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| 59 | 59 | | local government because of the decrease must be allocated to the state highway fund, to be |
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| 60 | 60 | | used by the department of transportation for the improvement of state highways in the local |
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| 61 | 61 | | government's jurisdiction, and the state funds are in addition to the funds otherwise allocated |
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| 62 | 62 | | for improvements in the local government's jurisdiction in that fiscal year. |
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| 63 | 63 | | SECTION 7. This act takes effect July 1, 2025, the public welfare requiring it. |
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