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Panel advances bill to direct motor vehicle and tire sales taxes to state transportation fund
Summary
House Bill 969, debated in the subcommittee, would redirect sales tax on new and used vehicle sales and tire sales into the state transportation fund to create recurring revenue previously provided as a one-time allocation by the governor; the subcommittee voted unanimously to send the bill to the full Transportation Committee.
House Bill 969 was debated and advanced by the Tennessee House Transportation Subcommittee on Feb. 18, 2025. The bill would dedicate sales tax revenue from tire sales — and from sales of new and used motor vehicles — to the state transportation fund, producing a recurring revenue stream that the sponsor said would mirror a one‑time $1 billion allocation the governor placed in the transportation budget.
The presenter said the bill mirrors language proposed in the governor’s State of the State address and would shift sales tax on tires and vehicle sales to the transportation fund. The sponsor told members the subcommittee and the Department of Transportation will need to resolve timing and technical issues as the measure moves to the full Transportation Committee and later to the Finance Committee; amendatory language is expected.
Committee members called the previous question and the clerk reported 8 ayes; the measure now moves to the full Transportation Committee for further consideration.
No formal amendments or vote breakdown by member name were recorded in the subcommittee minutes; the clerk reported an 8–0 tally.
