Bill > SB1307

This bill expands local governments' ability to levy a surcharge on local privilege taxes to fund transportation improvements across all cities and counties in Tennessee, not just the previously specified jurisdictions. The bill modifies existing law to broaden the definition of "transportation improvement program" to include not only public transit system projects but also highway and bridge projects. Key provisions include redefining terms like "implementing agency" and "local government" to be more inclusive, and introducing a new requirement that local governments maintain their historical level of road funding to be eligible for surcharge proceeds. Specifically, local governments must continue to appropriate and allocate funds for road purposes at an average level from the five preceding fiscal years, or risk having their surcharge revenues reduced and redirected to the state highway fund. If a local government falls short of this funding threshold after July 1, 2025, the shortfall amount will be reallocated to the state department of transportation for highway improvements in that jurisdiction. The bill aims to ensure consistent local investment in transportation infrastructure while providing more flexibility for local governments to generate and use transportation-related funds. The changes will take effect on July 1, 2025.

Transportation and Infrastructure

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1307&ga=114