House Bill 695 amends the Tennessee Code Annotated regarding the mineral severance tax, specifically addressing the tax rates that county legislative bodies can set for the severance of sand, gravel, sandstone, chert, or limestone. The bill establishes a tiered tax rate structure: fifteen cents per ton for tax periods beginning before July 1, 2025; twenty cents per ton for periods starting between July 1, 2025, and July 1, 2030; twenty-five cents per ton for periods from July 1, 2030, to July 1, 2035; and thirty cents per ton for periods starting on or after July 1, 2035. Additionally, it removes a subsection from Section 67-7-201 and redesignates the remaining subsection.

Furthermore, the bill mandates that counties receiving revenue from this tax must submit an annual written report detailing their revenue and expenditures related to the county road fund. It also allows county legislative bodies to increase the tax rate by a two-thirds majority vote, with the new rate taking effect at least thirty days after the Department of Revenue receives a certified copy of the resolution. This act will take effect upon becoming law, emphasizing the public welfare.

Statutes affected:
Introduced: 67-7-203(a), 67-7-203, 67-7-201, 67-7-207(b), 67-7-207, 67-7-212