Bill > HB1683

This bill, effective October 1, 2026, mandates that a significant portion of sales and use tax revenue generated from the sale of new or used motor vehicles and tires will be directed to the state's highway fund, which is crucial for maintaining and improving roads. Specifically, 95.3970% of this revenue will go to the highway fund, while the remaining 4.6030% will be distributed to incorporated municipalities based on their population. Additionally, all revenue from a specific portion of the sales tax on motor vehicles and tires, levied at a rate of 2.75% on amounts between $1,600 and $3,200, will also be deposited into the highway fund. The bill also requires the Department of Transportation to conduct a study on future transportation infrastructure needs and funding sources, considering existing and potential revenue streams, and to report its findings by January 1, 2028. Importantly, this bill clarifies that revenue from certain tax increases dedicated to education will not be affected by these new allocation rules.

Budget and Finance, Transportation and Infrastructure

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1683&ga=114