The plan would raise the gas tax to pay for transportation projects but the hike wouldn’t happen all at once.
This July, gas and diesel taxes would increase by four cents each. In July 2018, the gas tax would go up one cent and the tax on diesel would increase by three cents. In July 2019, it increases again by one cent and the diesel tax by three cents. When it’s all said and done, Tennessee drivers would be paying six cents more for gas and 10 cents more for diesel per gallon.
The bill would also create some savings. It reduces sales tax on groceries, corporate taxes on manufacturers and the tax on earnings from stocks and bonds and property tax relief for disabled veterans.
Money generated from the gas tax would be used to pay for transportation projects.
Right now, it’s 21.4 cents per gallon. This would be the first increase in the state in 30 years.
Legislators hope to reach an agreement before the bill heads to Governor Haslam for his signature.