The current tax of 21.4 cents per gallon is one of nation’s lowest and longest-standing rates.
Is a Tennessee Gas Tax Hike Coming?
Across the country, many states are dealing with mounting infrastructure problems while transportation funds are dwindling. Tennessee is no different, and legislators may look to a gas tax increase to deal with the problem. State legislators are mindful that the Trump administration has indicated it plans to propose an infrastructure package, and are awaiting details from federal leaders and Gov. Bill Haslam.
NFIB will engage our membership on this issue, and your feedback will be critical in the debate. Please be on the lookout for a special survey in 2017.
Gov. Haslam has been open to the idea of a gas tax increase for awhile. Currently, the state’s gas tax is one of the lowest in the nation at 21.4 cents per gallon, and it’s been in place for nearly 30 years. Advocates for a tax increase say the Tennessee Department of Transportation’s expenses continue to grow, and current revenue levels are not cutting it
As noted, impetus to act may come from the Trump administration, as the president-elect has emphasized that infrastructure will be a top priority of his presidency. Other states’ transportation funding solutions may be a model as well. The Howard H. Baker Jr. Center for Public Policy, Center for Transportation Research, and the UT Boyd Center for Business & Economic Research recently released a policy brief on the topic, “Tax Policies and Alternative Revenue Sources: State Responses to Declining Purchasing Power of Roadway Funding.”
Tennessee’s transportation funding reform efforts will be an issue to watch in 2017. Stay tuned, and be ready to voice your opinion!
