SB1307 amends Tennessee tax laws to expand local tax surcharges to include transportation improvements.

SB1307 amends Tennessee Code to expand the scope of local tax surcharges to include transportation improvements, including public transit systems, highways, and bridges. The bill redefines "transportation improvement program" and modifies the language in relevant sections to reflect this broader scope. It also requires local governments to allocate funds for road purposes from local revenue sources, excluding certain exceptions, to be eligible to collect and administer surcharge proceeds. The act takes effect July 1, 2025.

SB1307 amends Tennessee tax laws to expand local tax surcharges to include transportation improvements.

SB1307 amends Tennessee Code to expand the scope of local tax surcharges to include transportation improvements, including public transit systems, highways, and bridges. The bill redefines "transportation improvement program" and modifies the language in relevant sections to reflect this broader scope. It also requires local governments to allocate funds for road purposes from local revenue sources, excluding certain exceptions, to be eligible to collect and administer surcharge proceeds. The act takes effect July 1, 2025.