Bill > SB0889

This bill modifies Tennessee's mineral severance tax regulations by gradually increasing the maximum tax rate on minerals like sand, gravel, sandstone, chert, and limestone 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. The bill introduces a new requirement that any tax rate increase must be approved by a two-thirds majority vote of the county legislative body, and the county must provide an annual written report to various state officials detailing the revenue collected from the tax and how it was spent on county road construction, maintenance, and repair. Additionally, the bill removes a specific provision related to Smith County's ability to allocate mineral severance tax revenue to its general fund, mandating that such funds must be directed to the county road fund. The new tax rate changes will not be implemented by the department of revenue until at least 60 days after the county legislative body's certified resolution is received, ensuring a clear and transparent process for tax rate adjustments.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0889&ga=114