Bill > HB1406

This bill amends the existing law for Fayette County regarding the county wheel tax (a special local vehicle license fee) by changing several key provisions. Previously, the county court clerk collected the tax, but now the county clerk will be responsible for collecting the tax and issuing vehicle licenses. The bill requires that 100 percent of the tax revenue (excluding the clerk's administrative fees) be placed in the county general fund, with flexibility for the county to use these funds in three ways during its annual budget process: for general fund expenses, transferred to the county capital projects fund to pay for school construction and county facilities, or transferred to the county debt service fund to pay down debt related to school and county facility projects. The legislation differs from the previous law, which was more restrictive about using the tax revenue specifically for school construction debt. The bill will only take effect if approved by a two-thirds vote of the Fayette County legislative body, and the county clerk will continue to receive a $1 fee for each license issued, which is separate from the tax collected.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1406&ga=114