Taxes, Sales - As introduced, reallocates the increase in the rate of sales and use tax from 6 percent to 7 percent pursuant to Chapter 856 of the Public Acts of 2002 by apportioning 4.6030 percent of such increase to municipalities. - Amends TCA Section 67-6-103.

This bill modifies how revenue from a state sales tax increase is distributed between the state and local municipalities. It directs 4.6030% of the additional tax revenue from the increase of the sales and use tax rate from 6% to 7% to be apportioned to incorporated cities and towns, while the remaining 95.3970% goes to the state general fund. The legislation also updates related code sections to ensure revenue allocation follows this new distribution framework. This change affects how sales tax money collected from residents and businesses is shared between state and local governments.