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Bill > HB0969


TN HB0969

TN HB0969
AN ACT to amend Tennessee Code Annotated, Title 4; Title 54; Title 55; Title 65 and Title 67, relative to transportation.


summary

Introduced
02/05/2025
In Committee
04/17/2025
Crossed Over
04/21/2025
Passed
04/28/2025
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 modifies Tennessee's tax allocation rules to redirect revenue from tire sales to the state highway fund, starting July 1, 2025. Specifically, the bill requires that all monies received from the sale, use, consumption, or distribution of new or used tires be earmarked for the highway fund, with a cap of $80 million during the 2025-2026 fiscal year. Any revenue above that amount would be distributed according to existing allocation rules. The bill includes an important caveat that certain previously allocated educational tax revenues from specific past legislative acts (from 1992 and 2002) will continue to be allocated as originally designated and will not be affected by this new tire sales revenue redirection. The bill takes effect immediately upon becoming law, with the stated purpose of serving the public welfare.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (18)

Last Action

Effective date(s) 05/21/2025 (on 05/27/2025)

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