Bill > HB0963

This bill changes how Tennessee allocates sales tax revenue from motor vehicle and tire sales to the state highway fund. Specifically, starting on July 1, 2025, the state will calculate the amount of sales tax collected from new and used motor vehicles and tires that exceeds the "base tax revenues" (which are defined as the sales tax revenues from these items at the end of the previous fiscal year) and automatically allocate that excess amount to the highway fund. The bill explicitly excludes certain previously established sales tax increases related to educational purposes from this new allocation method. Important definitions are provided, noting that "motor vehicle" and "tire" will have the same meanings as in an existing statute (§ 67-4-1602). The legislation aims to provide a consistent, predictable funding mechanism for highway infrastructure by directing incremental growth in sales tax revenue from vehicle and tire sales directly to the highway fund, effective July 1, 2025.