Senate Bill 24 amends Tennessee Code Annotated to establish a new allocation method for sales tax revenue specifically for the highway fund. A new subsection (v) is added 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, any state sales tax revenue exceeding these base tax revenues will be allocated to the highway fund, ensuring that the incremental increase in sales tax from these categories is directed towards highway funding.

Additionally, the bill specifies that revenues derived from certain sales tax increases 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 unaffected by the changes made in this bill. The act is set to take effect on July 1, 2025, emphasizing the importance of this revenue allocation for the state's highway funding needs.

Statutes affected:
Introduced: 67-6-103