Senate Bill 177 amends Tennessee Code Annotated, Section 67-6-103, to modify the distribution of revenues generated from specific sales and use taxes. The bill replaces subdivision (c)(1) to stipulate that all revenue from a tax rate of 2.75% on sales of personal property priced between $1,600 and $3,200 will be allocated exclusively to the state general fund for general state purposes. Additionally, a new subdivision (c)(3) is added, specifying that 4.6030% of the revenue from the increase in the sales and use tax rate from 6% to 7% will be apportioned to incorporated municipalities, while 95.3970% will also go to the state general fund for general purposes.

The bill further revises several subsections by deleting specific language and substituting it with a requirement that revenue must be allocated according to the provisions of previous public acts. This includes the deletion of certain phrases regarding the revenue derived from the tax rate increase in subsections (p) and (t), which are also replaced with the same allocation requirement. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 67-6-103, 67-6-103(c)