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2020 Tennessee Code
Title 67 - Taxes and Licenses
Chapter 3 - Petroleum Products and Alternative Fuels Tax Law
Part 9 - General Administrative Provisions
§ 67-3-905. Diesel Tax, Compressed Natural Gas, and Prepaid User Diesel Tax — Allocation of Proceeds

Universal Citation: TN Code § 67-3-905 (2020)
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  1. The tax imposed pursuant to §§ 67-3-202, 67-3-1113, and 67-3-1309, shall be allocated and distributed in the following order and manner:
    1. One and sixty-two hundredths percent (1.62%) to the general fund;
    2. Twenty-four and seventy-five hundredths percent (24.75%) to the counties of the state to become a part of the county highway fund in the following manner:
      1. Fifty percent (50%) equally among all counties;
      2. Twenty-five percent (25%) on the basis of population; and
      3. Twenty-five percent (25%) on the basis of area;
    3. Twelve and thirty-eight hundredths percent (12.38%) to municipalities, as defined in § 54-4-201, on the basis set out as § 54-4-203; and
    4. Sixty-one and twenty-five hundredths percent (61.25%) to the highway fund.
  2. Revenues from the increases in taxes imposed by chapter 931 of the Acts of 1986, shall be distributed and allocated as follows:
    1. Amounts required to be paid to the debt service fund pursuant to title 9, chapter 9; and
    2. All other amounts to the highway fund to be used for accelerating the resurfacing of the state system of highways in order to establish a twelve-year cycle of resurfacing within the period between 1986 and 1998; and for new construction in the primary system of highways over the period from 1986 to 1999.
  3. All revenues and investment income derived from the increase in the motor vehicle fuel use tax imposed by chapter 46 of the Acts of 1989 shall be placed in the state highway fund, and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  4. Revenue from the one cent (1¢) increase from sixteen cents (16¢) to seventeen cents (17¢) in the tax imposed by chapter 241 of the Acts of 1989, effective April 1, 1990, and all investment income derived therefrom, shall be placed in the state highway fund and shall not be subject to the apportionment and distribution provisions of subsections (a) and (b).
  5. Revenues derived under § 67-3-202 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be apportioned and distributed in the following manner:
    1. Seventeen and five-tenths percent (17.5%) to the various counties of the state on the basis set forth in § 54-4-103;
    2. Eight and eight-tenths percent (8.8%) to the various municipalities, as defined by § 54-4-201, on the basis set forth in § 54-4-203; and
    3. Seventy-three and seven-tenths percent (73.7%) to the highway fund.
  6. Revenues derived under § 67-3-1113 from the increase in taxes imposed by chapter 181 of the Public Acts of 2017 shall be distributed to the highway fund.

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