SB 1642 Tennessee Senate · 114th Regular Session (2025-2026)

Highways, Roads and Bridges - As introduced, requires 95.3970 percent, instead of 100 percent, of sales and use tax revenue generated from the sale of new or used tires to be deposited in the highway fund; adds 95.3970 percent of sales and use tax revenue generated from the sale of new or used motor vehicles to be deposited in the highway fund; requires the remaining 4.6030 percent of such revenue to be allocated to the several incorporated municipalities; allocates single article sales tax collections on the retail sale of new or used motor vehicles to the highway fund. - Amends TCA Title 4; Title 54; Title 55; Title 65 and Title 67.

SB 1642 changes how certain tax revenues from tire and vehicle sales are distributed. Starting October 1, 2026, 95.3970% of sales and use tax revenue from new/used tires and motor vehicles will go to the highway fund (instead of 100%), while the remaining 4.6030% will be allocated monthly to incorporated Tennessee municipalities based on population. The bill also specifies that a 2.75% tax on vehicle/tire sales above $1,600 must fund the highway fund, excluding existing education and tax rate increase allocations. This directly affects local municipalities receiving the 4.6% share and the highway fund's funding stream.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 14, 2026 Last action Apr 20, 2026
Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
8
Key actions
5
Committee
6
Apr 20, 2026
Lower · Passed
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
lower
Apr 14, 2026
Lower · Passed
Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
lower
Apr 14, 2026
Lower · Passed
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
lower
Feb 18, 2026
Lower · Passed
Recommended for passage, refer to Senate Finance, Ways, and Means Committee
lower
Feb 11, 2026
Lower · Passed
Placed on Senate Transportation and Safety Committee calendar for 2/18/2026
lower
Jan 15, 2026
Committee
Passed on Second Consideration, refer to Senate Transportation and Safety Committee
upper
Jan 14, 2026
Introduced
Introduced, Passed on First Consideration
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Page Walley
Page Walley
RRepublican
TN
26