AN ACT to amend Tennessee Code Annotated, Section 67-6-103, relative to distribution of revenues.
Summary
HB0909 amends Tennessee’s revenue-distribution statute for sales and use tax collections. The bill revises how certain proceeds from the state’s sales tax structure are allocated, specifically directing revenue from the tax on single articles of personal property above $1,600 and up to $3,200 into the state general fund for general state purposes. It also establishes a new allocation formula for revenue generated by the 2002 increase in the sales and use tax rate from 6% to 7%, directing 4.6030% of that revenue to certain incorporated municipalities and the remaining 95.3970% to the state general fund.
The bill further updates multiple cross-references in Tennessee Code Annotated Section 67-6-103 so that various subsections consistently point to the revised allocation rules, including the new subdivision (c)(3). The act is scheduled to take effect on July 1, 2025, and would change the statutory distribution of existing sales tax revenues rather than create a new tax.
The overall sentiment in the available record appears neutral to procedural, with no committee transcripts or recorded votes provided to show debate or opposition. Because there is no discussion history, the bill’s reception cannot be measured beyond the text itself, which is narrowly focused on revenue allocation and statutory cleanup.
The main point of contention, based on the bill’s subject matter, would likely be how sales tax revenue is divided between the state general fund and municipalities. Any stakeholders concerned with local government funding, state budget priorities, or the continued treatment of revenue tied to the 2002 sales tax increase would be directly affected, but no specific objections or supporters are documented in the provided materials.
Impact
HB0909 would amend Tennessee’s sales and use tax revenue-distribution provisions in Tennessee Code Annotated § 67-6-103. It redirects specified revenue streams into the state general fund, creates a defined municipal share for revenue associated with the 2002 sales tax increase, and updates related statutory references to conform to the new allocation language. The bill affects state fiscal administration and the distribution of tax receipts to municipalities, but it does not change the underlying sales tax rates or impose a new tax.
Sentiment
No committee transcripts or votes are included, so there is no recorded debate to indicate support or opposition. Based on the bill text alone, the measure appears technical and budget-focused, with a neutral tone centered on revenue allocation and statutory alignment rather than a controversial policy change.
Contention
The likely area of contention is the allocation of sales tax revenue between the state and incorporated municipalities. Municipal governments may be attentive to whether the new formula preserves local revenue shares, while state fiscal interests may favor directing more funds to the general fund. Because the record contains no discussion transcripts or vote history, no specific lawmakers, committees, or stakeholder groups are identified as taking a position.