Bill > HB0695

This bill modifies Tennessee's mineral severance tax regulations by gradually increasing the maximum tax rate for sand, gravel, sandstone, chert, and limestone extracted from county lands over a 10-year period. Specifically, the tax rate will incrementally rise from 15 cents per ton before July 1, 2025, to 30 cents per ton starting July 1, 2035. To increase the tax rate, county legislative bodies must now pass a resolution with a two-thirds majority vote and provide the department of revenue with a certified copy at least 60 days before implementation. Additionally, the bill mandates that counties receiving severance tax revenue must submit an annual written report to several state officials, including the comptroller and transportation commissioner, detailing the amount of revenue collected and how it was spent on county road construction, maintenance, and repair. The bill also removes a previous provision that allowed Smith County to allocate its mineral severance tax to the county general fund, requiring these funds to be directed specifically to the county road fund. The legislation aims to provide more transparency and structured funding for county infrastructure through mineral extraction taxes.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0695&ga=114