TN HB0963

Beginning July 1, 2025, incremental growth in state sales tax revenue from new and used motor vehicles and tires above the prior fiscal year's base amount must be deposited into the state highway fund

"Base tax revenues" is defined as the sales tax collected on motor vehicles and tires at the end of the fiscal year immediately preceding each allocation year

Revenue from the 1992 sales tax increase for educational purposes and the 2002 increase from 6% to 7% is excluded from this highway fund allocation and continues under existing distribution rules

Amends Tennessee Code Annotated sections related to state finance, highways, motor vehicles, and taxes (Titles 9, 54, 55, and 67)