Senate Bill 24 amends Tennessee Code Annotated to establish a new allocation method for state sales tax revenue specifically for the highway fund. The bill introduces a new subsection (v) to Section 67-6-103, defining "base tax revenues" as the sales tax collected from the sale, use, consumption, distribution, or storage of new or used motor vehicles and tires at the end of the fiscal year prior to the allocation year. Starting July 1, 2025, and annually thereafter, any state sales tax revenue exceeding these base tax revenues from motor vehicles and tires will be allocated to the highway fund, ensuring that the incremental increase in sales tax is directed towards highway funding.

Additionally, the bill clarifies that revenues derived from specific increases in sales tax rates allocated for educational purposes, as established in previous public acts, will not be included in this new allocation method. This ensures that the funds designated for education remain separate from those allocated to the highway fund. The act is set to take effect on July 1, 2025, emphasizing the importance of this revenue allocation for the state's infrastructure needs.

Statutes affected:
Introduced: 67-6-103