Bill > HB0127

This bill expands the existing local tax surcharge program in Tennessee by broadening its applicability and modifying its terminology and requirements. Specifically, the bill allows all cities and counties in Tennessee (not just a limited list of specific municipalities) to levy a surcharge on local privilege taxes to fund transportation improvement programs. The bill changes the term "transit improvement" to "transportation improvement" throughout the relevant legal code, which effectively broadens the scope of potential projects from just public transit to include highways and bridges as well. The bill introduces a new requirement that local governments must maintain their historical level of road funding to be eligible for these surcharge proceeds, with a mechanism that reduces funding allocations if they fail to meet this standard. If a local government's road funding falls below its five-year historical average after July 1, 2025, any shortfall will be redirected to the state highway fund for road improvements in that jurisdiction. The bill aims to provide more flexibility for local governments in funding transportation infrastructure while also ensuring a consistent baseline of local investment in road maintenance and development. The changes will take effect on July 1, 2025.

Budget and Finance, Transportation and Infrastructure

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0127&ga=114