Tennessee Senate Bill SB1428

Tennessee 2025-2026 Regular Session

• Introduced: 2/12/25
• Chaptered: 5/8/25
• Passed: 5/8/25

Caption

AN ACT to amend Chapter 116 of the Private Acts of 2000; and any other acts amendatory thereto, relative to Fayette County.

Summary

SB1428 is a local/private act for Fayette County that amends a prior private act governing the county’s special wheel or privilege tax on motor vehicles. The bill requires the Fayette County clerk to collect the county tax at the same time the state motor vehicle privilege tax is collected, and it conditions issuance of a state vehicle license on payment of the county’s local license fee. It also provides for a decal, sticker, or emblem as proof of payment, with the design set by the county commission and paid for from county general funds. The bill further specifies how the revenue is handled: after clerk fees are deducted, 100% of the tax proceeds are initially deposited into the county general fund and may then be used for general fund purposes or transferred, at the county’s discretion during the annual budget process, to the capital projects fund or debt service fund. Those transferred funds may be used for school construction and other county facilities, including debt service on related obligations. The act is not self-executing statewide; it takes effect only if approved by a two-thirds vote of the Fayette County legislative body, making it a local-option measure rather than a general state law change.

Impact

The bill amends a Fayette County private act rather than the Tennessee Code generally, so its legal effect is limited to Fayette County. It changes local tax collection procedures for motor vehicle privilege taxes, authorizes a county-issued decal system, sets a $1 clerk fee for issuance and replacement decals, and directs the disposition of collected revenues into county funds that can support general operations, capital projects, school construction, and debt service. It also preserves local control by requiring approval from the county legislative body before the amendment becomes operative.

Sentiment

The available voting history shows strong support and no recorded opposition: the floor motion to adopt passed 32-0 on April 14, 2025. No committee transcripts are available, but the unanimous vote suggests the measure was broadly viewed as a routine local government or revenue administration bill rather than a controversial policy change. The bill’s structure, which gives Fayette County flexibility over how to use the revenue, also indicates it was likely seen as practical and locally tailored.

Contention

There is little evidence of substantive contention in the available record. The main policy choice embedded in the bill is whether Fayette County should continue and restructure its special wheel or privilege tax collection and revenue allocation, including the use of proceeds for school construction, county facilities, and debt service. Any potential concern would likely center on the local tax burden on vehicle owners, the requirement that a county tax be paid alongside state registration, and the county’s discretion to redirect revenues among general, capital, and debt-related uses. However, the unanimous vote suggests no significant opposition was raised in the legislative process shown here.