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.

SB 177 reallocates revenue from Tennessee's 2002 sales tax rate increase (from 6% to 7%) between local governments and the state. It directs 4.6% of the additional tax revenue to incorporated municipalities for their use, while 95.4% is allocated to the state general fund for state purposes. This change modifies Tennessee Code Annotated Section 67-6-103 to adjust the distribution of funds from the tax increase. The bill takes effect on July 1, 2025, and does not create new taxes or alter existing tax rates.