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TN SB0144

TN SB0144
AN ACT to amend Tennessee Code Annotated, Title 4; Title 54; Title 55; Title 65 and Title 67, relative to transportation.


summary

Introduced
01/14/2025
In Committee
Crossed Over
Passed
05/27/2025
Dead
Signed/Enacted/Adopted
05/27/2025

Introduced Session

114th General Assembly

Bill Summary

As enacted, generally requires that all monies received under the sales and use tax from the sale, use, consumption, or distribution of new or used tires on or after July 1, 2025, must be earmarked and allocated to the highway fund. - Amends TCA Title 4; Title 54; Title 55; Title 65 and Title 67.

AI Summary

This bill amends Tennessee's tax code to redirect revenue from tire sales to the state highway fund, specifically allocating all monies received from the sale, use, consumption, or distribution of new or used tires to the highway fund starting July 1, 2025. During the 2025-2026 fiscal year, the allocation is capped at $80 million, with any amount exceeding that cap being distributed according to existing allocation methods. The bill importantly preserves existing allocations for educational purposes from previous sales tax increases, ensuring that those specific revenue streams remain unchanged. By earmarking tire sale revenues for the highway fund, the legislation aims to provide additional funding for transportation infrastructure, though the bill does not specify exactly how these funds will be used beyond their destination in the highway fund. The bill will take effect immediately upon becoming law, with the stated purpose of serving the public welfare.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (12)

Last Action

Comp. became Pub. Ch. 508 (on 05/27/2025)

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