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Panel advances bill to make vehicle/tire fees a recurring source for Tennessee transportation
Summary
House Bill 1683 would direct existing user fees from vehicle and tire sales into the state transportation fund to create a recurring revenue stream. Sponsor said the change redirects existing revenue (no new tax) and estimated roughly $800 million in the first partial year and over $1 billion in the first full year; committee approved the bill 20-0.
The House Transportation Committee advanced House Bill 1683, a measure to convert certain existing user fees from vehicle and tire sales into a recurring revenue stream for the state transportation fund.
Chairman Hawk, the bill sponsor, framed the proposal as a way to make funding "recurring" rather than reliant on one-time or non-recurring allocations. He cited the Transportation Modernization Act's $3,000,000,000 in state funds and said the current budget cycle added roughly $1,000,000,000, producing a multi-cycle package of about $4,000,000,000. Hawk said the bill "takes a user fee from the sale of vehicles and tires" and estimated a portion of the first year at roughly $800,000,000 and more than $1,000,000,000 in the first full year.
Asked whether the bill creates new taxes, Hawk answered directly: "No new dollars. No new taxes." Members praised the proposal as a start toward long-term revenue stability for roads and bridges, and the clerk reported a roll-call result of 20 ayes and 0 nos; the chair referred the bill to finance.
