(a) Revenue from a surcharge must be used for costs associated with the planning, engineering, development, construction, implementation, administration, management, operation, and maintenance of public transit system projects that are part of a transit improvement program.
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Terms Used In Tennessee Code 67-4-3205

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Local government: means :
    (A) Any county in this state, including any county having a metropolitan or consolidated form of government, having a population in excess of one hundred twelve thousand (112,000), according to the 2010 federal census or any subsequent federal census. See Tennessee Code 67-4-3201
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Public transit system: means any mass transit system intended for shared passenger transport services to the general public, together with any building, structure, appurtenance, utility, transport support facility, transport vehicles, service vehicles, parking facility, or any other facility, structure, vehicle, or property needed to operate the transportation facility or provide connectivity for the transportation facility to any other non-mass transit system transportation infrastructure, including, but not limited to, interstates, highways, roads, streets, alleys, and sidewalks. See Tennessee Code 67-4-3201
  • State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof. See Tennessee Code 67-4-2004
  • Surcharge: means a tax, or combination of taxes, levied by a local government pursuant to this part. See Tennessee Code 67-4-3201
  • Transit improvement program: means a program consisting of specified public transit system projects and services. See Tennessee Code 67-4-3201
(b) Revenue from the surcharge may be:

(1) Combined with other funding generated by local, state, or federal governments from taxes, fees, or fares, and may be used to match state aid funds and federal grants;
(2) Combined with private moneys where allowed by law and used as a public entity’s share of costs associated with a public-private initiative entered into pursuant to chapter 975 of the Public Acts of 2016;
(3) Pledged to the payment of bonds issued for the purposes of financing a transit improvement program in accordance with this part; and
(4) Directed or transferred to implementing agencies to carry out a transit improvement program.
(c) If either a transit improvement program or a public transit system project that is part of a transit improvement program becomes unfeasible, impossible, or not financially viable, the revenue from the surcharge for the transit improvement program may be directed to and utilized for a separate transit improvement program or public transit system project that:

(1) Has been approved by:

(A) The local government‘s legislative body, as required in § 67-4-3206(e)(1); and
(B) A majority of the number of registered voters of the local government voting in an election pursuant to the procedures in § 67-4-3202; and
(2) Otherwise meets the requirements of this part.
(d) The proceeds of any bonds issued for the purposes of financing a transit improvement program shall not be used for operations of any public transit system projects or services that are part of the program, and in no event, shall the credit of any local government be given or loaned to or in aid of any person, company, association, or corporation, within the meaning of the Constitution of Tennessee, Article II, § 29.
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