Amends TCA Title 67, Chapter 6.

This bill deletes the present law provision whereby all revenue generated from the 2002 increase in the rate of sales and use tax from 6 percent to 7 percent and from the tax levied at the rate of 2.75 percent on the amount in excess of $1,600 but less than or equal to $3,200 on the sale or use of any single article of personal property is paid into the state general fund and allocated exclusively for general state purposes. This bill specifies that all revenue generated from the increase in the rate of sales and use tax from 6 percent to 7 percent in 2002 will be deposited in the state general fund and earmarked and allocated in accordance with the general allocation provisions (which is certain percentages to the general fund, local governments, earmarked for education, administrative expenses, and the sinking fund).<br /> <br /> This bill retains the present law whereby all revenue generated from the 0.5 percent increase in the sales and use tax rate that became effective April 1, 1992, is deposited in the state general fund and earmarked for education purposes in K-12; and whereby revenue generated from 0.5 percent of the tax rate on food and food ingredients continues to be deposited in the state general fund and earmarked for K-12 education purposes in regardless of whether such tax rate is reduced below 6 percent.<br />