Tennessee § 67-2-119 - Disposition of revenue.

§ 67-2-119. Disposition of revenue.

Of the taxes collected under this chapter upon income from stocks and bonds taxable at the rate provided in § 67-2-102 per annum, five-eighths (5/8) shall be paid into the general fund of the state treasury and the remaining three-eighths (3/8) shall be distributed among the cities and counties of the state. Where a taxpayer residing within the corporate limits of any municipality pays a tax imposed at the rate provided in § 67-2-102 per annum, then three-eighths (3/8) of the net tax collected from such taxpayer shall be returned to the city within which such taxpayer resides. Where a taxpayer residing in a county, but outside the corporate limits of any municipality, pays a tax imposed by this chapter at the rate provided in § 67-2-102 per annum, then three-eighths (3/8) of the net tax collected from such taxpayer shall be returned to the county within which such taxpayer resides. In each instance, the payment to cities and counties covering collections made under this section during any fiscal year shall be made on or before July 31 immediately following the close of that year. Acts 1931 (2nd Ex. Sess.), ch. 20, § 17; 1933, ch. 60, § 5; 1937, ch. 117, § 4; 1937, ch. 297, § 2; mod. C. Supp. 1950, § 1123.33; impl. am. Acts 1959, ch. 9, § 14; Acts 1963, ch. 271, § 3; 1978, ch. 507, § 1; T.C.A. (orig. ed.), § 67-2633; Acts 1985, ch. 395, § 4; 2003, ch. 355, § 32; 2005, ch. 500, § 4; 2006, ch. 989, § 9; 2016, ch. 1064, § 2; 2017, ch. 181, § 14. Compiler's Notes. Acts 2003, ch. 355, § 66 provided that no expenditure of public funds pursuant to the act shall be made in violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 U.S.C. § 2000 d. Acts 2003, ch. 355, § 73 provided that there is established within the general fund the state-shared revenue reduction mitigation account. Any amounts in the state-shared revenue reduction mitigation account shall be applied by the commissioner of finance and administration to offset reductions in state-shared revenues allocated to local governments pursuant to the provisions of the act so that such reductions shall not exceed nine percent (9%) of state-shared revenues that otherwise would have been allocated to any such local government. Funds shall be restored on a pro rata basis taking into account the percentage reduction to each local government from each state-shared revenue source. Acts 2006, ch. 989, § 17 provided that §§ 1-14 of the act shall apply to funds remitted to the department of revenue on or after August 1, 2006. Acts 2016, ch. 1064, § 4, provided that the act, which amended this section, shall apply to tax years beginning on or after January 1, 2016. Acts 2017, ch. 181, § 1 provided that the act, which amended this section, shall be known and may be cited as the “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy (IMPROVE) Act” or the “2017 Tax Cut Act.” Acts 2017, ch. 181, § 38 provided that the act, which amended this section, shall apply to tax years beginning on or after January 1, 2017. Amendments. The 2016 amendment substituted “five percent (5%)” for “six percent (6%)” throughout the section. The 2017 amendment substituted “at the rate provided in § 67-2-102 ” for “at the rate of five percent (5%)” throughout the section. Effective Dates. Acts 2016, ch. 1064, § 4. May 20, 2016. Acts 2017, ch. 181, § 38. April 26, 2017. Cross-References. Changes in municipal boundaries, effect upon receipt and distribution of tax revenues, § 6-51-115 . Textbooks. Tennessee Jurisprudence, 23 Tenn. Juris., Taxation, § 16. Law Reviews. Tax Limitations of Counties and Municipalities (M. P. O'Connor), 12 Tenn. L. Rev. 174 (1934). Attorney General Opinions. The state can probably continue to distribute state-shared taxes even if the general assembly does not enact a general appropriations act, OAG 00-083 (5/4/00). Cited: Steele v. Industrial Dev. Bd. of the Metro. Gov't, 950 S.W.2d 345, 1997 Tenn. LEXIS 409 (Tenn. 1997).