Taxes - As enacted, increases, by 15 cents over a 10-year period, and subject to a two-thirds vote of the county legislative body, the maximum mineral severance tax rate that may be levied by a county on all sand, gravel, sandstone, chert, and limestone severed from the ground within its jurisdiction; removes the authorization for Smith County to allocate its mineral severance tax to the county general fund or a fund other than its county road fund. - Amends TCA Title 67, Chapter 7, Part 2.

HB 695 increases the maximum mineral severance tax rate for sand, gravel, sandstone, chert, and limestone in Tennessee counties, phasing from 15¢ to 30¢ per ton over 10 years (starting July 2025). It requires a two-thirds vote by county legislative bodies to adjust rates and prohibits counties from using this tax revenue for anything other than road funds - specifically removing Smith County’s prior flexibility to allocate funds elsewhere. Counties must now report annually on how mineral tax revenue is spent for road construction and maintenance. The bill directly affects counties levying these taxes and changes how they manage and report mineral revenue.