The Latest on Tennessee's Gas Tax Bill

Date: April 19, 2017

Hello, NFIB Member!

Most of the committees in the Tennessee House and Senate have closed, but the legislative session is far from over. Lawmakers are still debating the budget and the IMPROVE Act (“gas tax” bill), which at this writing was scheduled for floor action in the House on April 19. The vote is/was expected to be close.

NFIB did not advocate on the legislation because our members were basically split on the original bill – 55 percent against and 40 percent in favor. However, we did have your direction to oppose indexing (75 percent against), which lawmakers stripped early from the bill. The Senate then amended the bill in committee, in particular the local option referenda section, which authorizes voter approval for tax increases for transit improvement programs in 12 counties – adding seven business taxes to the governor’s originally proposed sales & use tax option. This was a concern for the business community.

Fifty-two percent of NFIB members had said they were for the local option, while 36 percent opposed, another split essentially. However, the amended proposal in the Senate said some of the newly added local option taxes on business – the business tax, hotel occupancy, and residential development – could potentially double. NFIB worked with other business groups and lawmakers to raise concerns about the broadly drafted amendment, which was fixed to include 20 percent caps on any of those tax increases, as well as greater accountability features and clarifying language. We did this while respecting our members’ original split position on the IMPROVE Act.

There’s a reason people equate lawmaking to sausage-making. Things definitely go through a grinder. I wanted you to know that NFIB had a seat at the table to represent our members’ collective interests the best we could, which I believe we did. As we’ve said before, you’re either on the menu or at the table. NFIB helps you to have a seat at that table.

Stay tuned for further updates on this and other legislation, and have a great spring!

Jim Brown, Tennessee State Director
[email protected]
615.874.5288

Related Content: Small Business News | Economy | Tennessee

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