Public Funds and Financing - 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 ear, the official text

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                     ~tate of \!tennessee

                          PUBLIC CHAPTER NO. 508

                                                  HOUSE BILL NO. 969

By Representatives Hawk, Howell, Hill, Sherrell, Barrett, Brock Martin, Capley, Lamberth,
     Williams, Maberry, Eldridge, Crawford, Davis, Terry, Shaw, Alexander, Hale, Grills

                                        Substituted for: Senate Bill No. 144

   By Senators Walley, Pody, Yager, Bailey, Bowling, Crowe, Hatcher, Jackson, Massey,
                                                 Reeves,Rose,Stevens

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

          WHEREAS, transportation is essential to "agriculture and commerce" as proclaimed on
the great seal of the State of Tennessee; and

          WHEREAS, Tennesseans have enjoyed a robust, efficient, safe, and reliable
transportation system for generations; and

          WHEREAS, Tennessee's transportation system must be maintained and is paramount to
Tennessee's future in this century and beyond; now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 67-6-103, is amended by adding the
following language as a new subsection (v):

                    (1) As used in this subsection (v), "tire" has the same meaning as defined in §
          67-4-1602.

                    (2) Notwithstanding the allocations provided for in subsection (a), all monies
          received under this chapter 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. During the 2025-2026 fiscal year, the amount apportioned and distributed pursuant
          to this subdivision (v)(2) must not exceed eighty million dollars ($80,000,000), and
          monies received above this amount must be apportioned and distributed pursuant to
          subsection (a).

                    (3) Notwithstanding this subsection (v) to the contrary, no portion of the revenue
          derived from the increase in the rate of sales and use tax allocated to educational
          purposes, pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the
          revenue derived from the increase in the rate of sales and use tax from six percent (6%)
          to seven percent (7%), pursuant to chapter 856, § 4 of the Public Acts of 2002, shall be
          apportioned and distributed pursuant to this subsection (v). All such revenue must
           continue to be allocated as provided in chapter 529, § 9 of the Public Acts of 1992, and
           chapter 856, § 4 of the Public Acts of 2002, respectively.

           SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.
                      HOUSE BILL NO. 969

PASSED:  April 22, 2025

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                                         CAMERON SEXTON, SPEAKER
                                        HOUSE OF REPRESENTATIVES

                                                       RANDYMCN
                                          SPEAKER OF THE SE

6 APPROVED this _,2 \ S,- day of v:Y\-1.  2025

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BILL LEE, GOVERNOR