Taxes, Sales - As introduced, allocates all revenue generated from the state sales tax on retail sales of new or used motor vehicles and new or used tires in excess of base tax revenues to the state highway fund. - Amends TCA Title 9; Title 54; Title 55 and Title 67.

HB 963 redirects all state sales tax revenue from new and used motor vehicles and tires that exceeds a base amount to the state highway fund, starting July 1, 2025. The base amount is defined as the revenue collected in the previous fiscal year for these items, with any incremental increase sent to the highway fund annually. The bill specifically excludes revenue from two existing tax increases already allocated for education (from 1992 and 2002). This change ensures ongoing highway funding from vehicle and tire sales growth without affecting current education-related tax allocations.