Amends Tennessee tax revenue allocation for sales and use tax increases.

This bill amends Tennessee Code Annotated, Section 67-6-103, to change how revenues from sales and use tax increases are allocated. Specifically, it modifies the distribution of revenue from the increase in the sales and use tax rate from 6% to 7%. Under the new allocation, 4.6030% of the revenue will go to incorporated municipalities, while 95.3970% will be paid into the state general fund for general state purposes. The changes take effect July 1, 2025.

Amends Tennessee tax revenue allocation for sales and use tax increases.

This bill amends Tennessee Code Annotated, Section 67-6-103, to change how revenues from sales and use tax increases are allocated. Specifically, it modifies the distribution of revenue from the increase in the sales and use tax rate from 6% to 7%. Under the new allocation, 4.6030% of the revenue will go to incorporated municipalities, while 95.3970% will be paid into the state general fund for general state purposes. The changes take effect July 1, 2025.