Amends TCA Section 67-6-103.

Present law earmarks and allocates moneys received as sales and use tax revenue as follows:<br /> <br /> (1) 29.0141 percent of such moneys to the general fund;<br /> <br /> (2) 65.0970 percent of such moneys to educational purposes;<br /> <br /> (3) 4.6030 percent to municipalities to be distributed to them monthly in the proportion as the population of each municipality bears to the aggregate population of all municipalities in Tennessee;<br /> <br /> (4) 0.3674 percent , or so much thereof as may be required, to the department of revenue for the administration and enforcement of the sales and use tax law; and<br /> <br /> (5) 0.9185 percent to the sinking fund account to be used by the state funding board for the payment of principal and interest becoming due on state bonds.<br /> <br /> This bill reduces the allocation of sales and use tax to the general fund based on the following schedule:<br /> <br /> (1) In fiscal year 2023-2024, 29.0141 percent;<br /> <br /> (2) In fiscal year 2024-2025, 28.8921 percent;<br /> <br /> (3) In fiscal year 2025-2026, 28.8190 percent;<br /> <br /> (4) In fiscal year 2026-2027, 28.7214 percent;<br /> <br /> (5) In fiscal year 2027-2028, 28.6238 percent; and<br /> <br /> (6) In fiscal year 2028-2029 and subsequent years, 28.5262 percent.<br /> <br /> This bill increases the allocation of sales and use tax to municipalities based on the following schedule:<br /> <br /> (1) In fiscal year 2023-2024, 4.6030 percent;<br /> <br /> (2) In fiscal year 2024-2025, 4.7250 percent;<br /> <br /> (3) In fiscal year 2025-2026, 4.7981 percent;<br /> <br /> (4) In fiscal year 2026-2027, 4.8957 percent;<br /> <br /> (5) In fiscal year 2027-2028, 4.9933 percent; and<br /> <br /> (6) In fiscal year 2028-2029 and subsequent years, 5.0909 percent.<br />