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HB0969 • 2026

Public Funds and Financing

AN ACT to amend Tennessee Code Annotated, Title 4; Title 54; Title 55; Title 65 and Title 67, relative to transportation.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hawk, Walley
Last action
2025-05-27
Official status
Effective date(s) 05/21/2025
Effective date
Not listed

Plain English Breakdown

The candidate explanation included an exemption for educational funding that was not clearly supported by the official source material. The bill text and summary do mention exemptions but in a way that is less clear than initially stated.

Transportation Infrastructure Study and Funding

This bill directs the Tennessee Department of Transportation to study transportation infrastructure needs for future years and allocates certain sales tax revenues from vehicle and tire sales to the highway fund.

What This Bill Does

  • Requires the department of transportation to study transportation infrastructure needs, costs, and funding sources for the years 2026, 2050, and 2075.
  • Directs the department to report its findings and recommendations by December 1, 2025.
  • Allocates all sales tax revenue from new or used motor vehicles and tires sold after July 1, 2025, to the highway fund.
  • Subtracts one percent of funds designated for the general fund to cover administrative expenses before distribution.

Who It Names or Affects

  • The Tennessee Department of Transportation
  • Motor vehicle and tire retailers

Terms To Know

Highway Fund
A fund used to support transportation infrastructure projects.
Sales Tax
A tax charged on the sale of goods or services, collected by retailers and remitted to the government.

Limits and Unknowns

  • The bill does not specify how much additional funding will be available for transportation.
  • It is unclear what specific recommendations the department might make based on their study.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB0969

Plain English: This amendment changes specific dates related to transportation funding and alters how certain tax revenue is allocated.

  • Changes '2026' to '2027' for a deadline in § 54-1-105(a).
  • Replaces 'December 1, 2025' with 'January 1, 2027' for another deadline in § 54-1-105(c).
  • Modifies the date from 'July 1, 2025' to 'October 1, 2025' in Section 2 and the effective date section.
  • Adds new language to allocate tax revenue generated from motor vehicle sales after October 1, 2025, into the highway fund.
  • The amendment text does not provide context for why these specific changes are being made or their broader implications.
Amendment 2-0 to HB0969

Plain English: The amendment changes how money from tire sales taxes is used, directing it to the highway fund starting July 1, 2025.

  • Money received from tire sales taxes after July 1, 2025, will be allocated to the highway fund.
  • During the fiscal year 2025-2026, no more than $80 million can go to the highway fund from tire sales tax revenue.
  • The amendment does not specify what happens if less than $80 million is collected in the first year.
  • It's unclear how this change will affect other parts of the budget or existing funding for education and highways.
Amendment 1-0 to SB0144

Plain English: This amendment changes specific dates related to transportation funding and alters how certain tax revenue is allocated.

  • Changes '2026' to '2027' for a deadline in § 54-1-105(a).
  • Replaces 'December 1, 2025' with 'January 1, 2027' for another deadline in § 54-1-105(c).
  • Modifies the date from 'July 1, 2025' to 'October 1, 2025' in Section 2 and the effective date section.
  • Replaces an existing subdivision (3) with new language that changes how tax revenue is allocated.
  • The amendment text does not provide context for why these specific dates are being changed, which limits understanding of its full impact.
Amendment 2-0 to SB0144

Plain English: The amendment changes how money from tire sales taxes is used, directing it to the highway fund starting July 1, 2025.

  • Money received from tire sales taxes after July 1, 2025, will be allocated to the highway fund instead of other uses.
  • During the fiscal year 2025-2026, a limit of $80 million is set for this allocation.
  • The exact details on how the money above $80 million will be handled are not fully explained in the amendment text.
  • It's unclear what happens to tire sales tax revenue before July 1, 2025.

Bill History

  1. 2025-05-27 Tennessee General Assembly

    Effective date(s) 05/21/2025

  2. 2025-05-27 Tennessee General Assembly

    Pub. Ch. 508

  3. 2025-05-27 Tennessee General Assembly

    Comp. became Pub. Ch. 508

  4. 2025-05-21 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-09 Tennessee General Assembly

    Transmitted to Governor for his action.

  6. 2025-05-08 Tennessee General Assembly

    Signed by Senate Speaker

  7. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  8. 2025-04-28 Tennessee General Assembly

    Enrolled; ready for sig. of H. Speaker.

  9. 2025-04-23 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2025-04-22 Tennessee General Assembly

    Passed Senate, Ayes 33, Nays 0

  11. 2025-04-22 Tennessee General Assembly

    Amendment withdrawn. (Amendment 2 - SA0447)

  12. 2025-04-22 Tennessee General Assembly

    Amendment withdrawn. (Amendment 1 - SA0054)

  13. 2025-04-22 Tennessee General Assembly

    Senate substituted House Bill for companion Senate Bill.

  14. 2025-04-22 Tennessee General Assembly

    Received from House, Passed on First Consideration

  15. 2025-04-22 Tennessee General Assembly

    Companion House Bill substituted

  16. 2025-04-21 Tennessee General Assembly

    Engrossed; ready for transmission to Sen.

  17. 2025-04-21 Tennessee General Assembly

    Passed H., as am., Ayes 89, Nays 0, PNV 0

  18. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  19. 2025-04-21 Tennessee General Assembly

    H. adopted am. (Amendment 2 - HA0506)

  20. 2025-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0016)

  21. 2025-04-21 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/22/2025

  22. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  23. 2025-04-21 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 0

  24. 2025-04-17 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/21/2025

  25. 2025-04-17 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/17/2025

  26. 2025-04-17 Tennessee General Assembly

    Sponsor(s) Added.

  27. 2025-04-17 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  28. 2025-04-17 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

  29. 2025-04-17 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025

  30. 2025-04-16 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

  31. 2025-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025

  32. 2025-04-14 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025

  33. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  34. 2025-03-19 Tennessee General Assembly

    Sponsor(s) Added.

  35. 2025-03-19 Tennessee General Assembly

    Placed behind the budget

  36. 2025-03-12 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/19/2025

  37. 2025-03-06 Tennessee General Assembly

    Sponsor(s) Added.

  38. 2025-03-05 Tennessee General Assembly

    Sponsor(s) Added.

  39. 2025-03-05 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 8, Nays 0 PNV 1

  40. 2025-02-26 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  41. 2025-02-26 Tennessee General Assembly

    Sponsor(s) Added.

  42. 2025-02-26 Tennessee General Assembly

    Placed on Senate Transportation and Safety Committee calendar for 3/5/2025

  43. 2025-02-25 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  44. 2025-02-19 Tennessee General Assembly

    Placed on cal. Transportation Committee for 2/25/2025

  45. 2025-02-18 Tennessee General Assembly

    Rec. for pass by s/c ref. to Transportation Committee

  46. 2025-02-12 Tennessee General Assembly

    Placed on s/c cal Transportation Subcommittee for 2/18/2025

  47. 2025-02-11 Tennessee General Assembly

    Assigned to s/c Transportation Subcommittee

  48. 2025-02-10 Tennessee General Assembly

    P2C, ref. to Transportation Committee

  49. 2025-02-06 Tennessee General Assembly

    Intro., P1C.

  50. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  51. 2025-01-16 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Transportation & Safety Committee

  52. 2025-01-15 Tennessee General Assembly

    Introduced, Passed on First Consideration

  53. 2025-01-14 Tennessee General Assembly

    Filed for introduction

Official Summary Text

This bill directs the department of transportation to study transportation infrastructure needs, costs, and funding sources for the years 2026,
2050, and 2075 and report its findings and recommendations to legislative committees by December 1, 2025. In conducting the study, the department must consider (i) existing sources of revenue dedicated to transportation infrastructure, including the high
w
ay fund; (ii) potential sources of existing revenue not dedicated to transportation but derived substantially from transportation activities; and (iii) the impact of the transportation equity trust fund on transportation infrastructure needs.

TRANSPORTATI
ON EQUITY TRUST FUND

This bill requires all revenues received from the sale, use, consumption, distribution, or storage for use or consumption of new or used motor vehicles and new or used tires on or after July 1, 2025, to be allocated to and deposited
in the highway fund. Additionally, this bill provides that 1% must be subtracted from the 29.0141% that is designated for distribution to the general fund, to be distributed to the department of transportation for expenses of administration prior to the
d
istribution to the general fund under present law. However, no portion of the revenue derived from the increase in the rate of sales and use tax allocated to educational purposes under present law for local education agencies on a per pupil basis for non
r
ecurring items such as supplies, textbooks, and equipment and general education purposes, and no portion of the revenue derived from the increase in the rate of sales and use tax from 6% to 7% from the tax levied on the sale of tangible personal property
a
t retail, must be apportioned and distributed pursuant to this bill. In those situations, the revenue must be allocated as provided in present law.

ON APRIL 21, 2025, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 969, AS AMENDED.

AMENDMENT #2 r
ewrites this bill to require that
all monies received under
the sales and use tax
from the sale, use, consumption, or distribution of new or used tires on or after July 1, 2025, must be earmarked and allocated to the highway fund.
Such requirement will no
t apply to
revenue generated from the
0.5%
increase in the sales and use tax rate that became effective April 1, 1992
, and which is presently earmarked for education, and
revenue derived from the increase in the rate of sales and use tax from 6% to 7% purs
uant
to
chapter 856 of the Public Acts of 2002.

Current Bill Text

Read the full stored bill text 
SENATE BILL 144
By Walley

HOUSE BILL 969
By Hawk

HB0969
001186
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 54; Title 55; Title 65 and Title 67, relative to
transportation.

WHEREAS, transportation is essential to "agriculture and commerce" as proclaimed on
the great seal of the State of Tennessee; and
WHEREAS, Tennesseans have enjoyed a robust, efficient, safe, and reliable
transportation system for generations; and
WHEREAS, Tennessee's transportation system must be maintained and is paramount to
Tennessee's future in this century and beyond; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 54, Chapter 1, Part 1, is amended by
adding the following language as a new section:
54-1-105.
(a) The department of transportation is directed to study transportation
infrastructure needs, costs, and funding sources for the years 2026, 2050, and 2075.
(b) In conducting the study, the department must consider:
(1) Existing sources of revenue dedicated to transportation infrastructure,
including the highway fund;
(2) Potential sources of existing revenue not dedicated to transportation
but derived substantially from transportation activities; and
(3) The impact of Section 2 of this act on transportation infrastructure
needs.

- 2 - 001186

(c) The department shall report findings and recommendations to the chairs of
the transportation and safety committee of the senate and the committee in the house of
representatives having jurisdiction over transportation by December 1, 2025.
SECTION 2. Tennessee Code Annotated, Section 67-6-103, is amended by adding the
following language as a new subsection (v):
(1) As used in this subsection (v), "motor vehicle" and "tire" have the same
meanings as defined in § 67-4-1602.
(2) Notwithstanding the allocations provided for in subsection (a), all revenues
received under this chapter from the sale, use, consumption, distribution, or storage for
use or consumption of new or used motor vehicles and new or used tires on or after July
1, 2025, must be allocated to and deposited in the highway fund.
(3) Notwithstanding another law to the contrary, from the amount designated for
distribution to the general fund in subdivision (a)(1), one percent (1%) must be
subtracted for distribution to the department of transportation for expenses of
administration prior to the distribution to the general fund under subdivision (a)(1).
(4) Notwithstanding this subsection (v) to the contrary, no portion of the revenue
derived from the increase in the rate of sales and use tax allocated to educational
purposes, pursuant to chapter 529, § 9 of the Public Acts of 1992, and no portion of the
revenue derived from the increase in the rate of sales and use tax from six percent (6%)
to seven percent (7%), pursuant to chapter 856, § 4 of the Public Acts of 2002, must be
apportioned and distributed pursuant to this subsection (v). The revenue must be
allocated as provided in chapter 529, § 9 of the Public Acts of 1992, and chapter 856, §
4 of the Public Acts of 2002, respectively.
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.