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 certain language and substituting it with a requirement that revenue be allocated according to the provisions of previous public acts. Specifically, it removes references to the revenue derived from the increase in the sales and use tax rate in subsections (p) and (t), replacing them with a consistent allocation directive. The act is set to take effect on July 1, 2025, contingent upon public welfare considerations.

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