Tennessee HB0963 allocates excess state sales tax from motor vehicles and tires to the highway fund starting July 1, 2025.

Tennessee HB0963 amends state law to allocate excess state sales tax revenue from the sale, use, consumption, distribution, or storage of new or used motor vehicles and tires to the highway fund. This allocation begins on July 1, 2025, and continues annually thereafter. The revenue must be deposited in the highway fund in an amount equal to the incremental increase in state sales tax over base tax revenues. Notably, this allocation does not apply to revenue from the increase in the sales tax rate allocated to educational purposes.

Tennessee HB0963 allocates excess state sales tax from motor vehicles and tires to the highway fund starting July 1, 2025.

Tennessee HB0963 amends state law to allocate excess state sales tax revenue from the sale, use, consumption, distribution, or storage of new or used motor vehicles and tires to the highway fund. This allocation begins on July 1, 2025, and continues annually thereafter. The revenue must be deposited in the highway fund in an amount equal to the incremental increase in state sales tax over base tax revenues. Notably, this allocation does not apply to revenue from the increase in the sales tax rate allocated to educational purposes.