State Rep. Jerry Sexton Calls Out Hypocrisy of Gas Tax Supporters Who Oppose Use of Sales Taxes for Road Construction

Fireworks erupted on the floor of the Tennessee House of Representativesewhen the typically rapid-fire tick-tock of the day’s agenda was interrupted as Rep. Jerry Sexton (R-Bean Station) questioned Rep. Ryan Williams (R-Cookeville) on the “special privilege” of professional sports teams re-directing sale tax revenues back to a Nashville municipal organization whose purpose is to promote sporting events and sports teams. Rep. Sexton drew a strong parallel between the redirection of those funds – which Williams supports – and the redirection a small portion of sales tax revenues for the benefit of road construction, improvements and repairs – which Williams opposes. Williams supports of Gov. Haslam’s plan to raise taxes on gas and diesel to fund road construction instead. Sexton pointedly called out the hypocrisy of supporters of Haslam’s gas tax increase plan, who claim road construction can only be funded by “user fees” of those who use roads, while sports team stadiums can be funded by those who do not use or attend events at those stadiums. Sexton made his remarks during a debate “over an unrelated bill on the House floor on Thursday that would redirect sales taxes collected at a proposed Major League Soccer stadium in Nashville to be…

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Commentary: NO, It ISN’T a Tax Cut for Regular Tennesseeans

Tennessee Star

Proponents of Governor Bill Haslam’s fuel tax increase claim it is actually a tax CUT thanks to reductions in a couple of large corporate taxes, like the Franchise & Excise tax. Cutting taxes on businesses to create more job growth while we have a $2 billion surplus is a great idea…but you don’t have to increase taxes elsewhere to justify it. As Nike ads used to proclaim: “Just DO It!!” The claim that a large tax increase on drivers in Tennessee with a slight reduction of taxes on food is a “net cut” because it is combined with unrelated cuts that benefit a few of the Governor’s cronies is the kind of misrepresentation that“fuels” a legitimate distrust of government. The tax INCREASES on fuel far surpass the CUTS in the sales tax on food. It’s not even close. Muddying the water with corporate tax cuts that benefit a few doesn’t change that truth. As the Haslam IMPROVE Act currently stands, it is a $345 million tax increase. Approximately $188 million will come from the increase in the gasoline tax; another $100 million will be generated by the increased diesel tax; and finally, about $57 million will be collected in the…

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Former Tennessee Trade Secretary Tapped for Ambassador to Japan

Tennessee Star

  The Associated Press reports President Trump has nominated William Francis Hagerty IV as Ambassador to Japan. Bill Hagerty, the co-founder of private-equity firm Hagerty Peterson and Company, is not a newcomer to politics. Earlier in his career, he served in the HW Bush Administration as a White House Fellow, reporting directly to the Vice President on matters of international trade, commerce, treasury, defense and telecommunications. After serving as Mitt Romney’s national finance chair in 2008, the Tennessee native was tapped by the newly-elected Governor Bill Haslam to serve as commissioner of the Tennessee Department of Economic and Community Development. His three-year tenure from 2011 – 2014 was hailed for its successes of significant investments by companies like Bridgestone, Calsonic Kansei and Nissan into the Volunteer State. In total, Hagerty’s term oversaw the addition of more than $15 billion in capital and 90,000 jobs. Hagerty was a Jeb Bush supporter early in the 2016 presidential election cycle, but switched to Donald Trump after he cinched the nomination. Soon after, Hagerty became instrumental in the Trump campaign and was eventually named as the transition team’s Director of Appointments in August of 2016. News of his official nomination is not a surprise to political watchers. President Trump first mentioned…

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Concerned Veterans of America: ‘Veterans Being Used in Tennessee Tax Hike Ploy’

Tennessee Star

Concerned Veterans of America (CVA)  blasted Tennessee’s Republican political establishment on Monday for using veterans in a “Tennessee [gas] tax hike ploy.” “The politicians pushing for this gas tax increase know that it’s unpopular, so they’ve resorted to using veterans as pawns to push their big government agenda. Pretending that this massive tax hike is good for the military community is an unconscionable move that disrespects those who fought and sacrificed for this country,” Mark Lucas, executive director of CVA said in a statement. “The truth is that this gas tax will hurt families and veterans alike who rely on affordable transportation in the state. Veterans deserve property tax relief, but not as part of a glaringly obvious ploy to increase taxes across the board. We urge the Tennessee legislature to look for ways to cut wasteful government spending instead of approving this disingenuous and costly tax hike,” Lucas said. The amended version of Gov. Haslam’s IMPROVE Act gas tax increase that passed the Senate Transporation Committee last week “includes a small tax relief for veterans which would exempt them from paying property taxes under certain circumstances, but would not protect them from the impact of the massive gas tax…

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Under Governor Haslam, Tennessee Department of Transportation ‘Overhead’ Costs Have Grown 63 Percent, While ‘Highway Infrastructure’ Spending Has Shrunk By 33 Percent

The Tennessee Department of Transportation (TDOT) total costs for “Administration” plus “Headquarters Operation,” what would be considered “overhead” in the business world, have grown by 63 percent, from $78.9 to $117 million, in the seven years between Gov. Haslam’s first budget in FY 2011-12 and his  proposed budget for FY 2017-18. While TDOTs overhead has skyrocketed, spending on one of the main Programs for road improvements, “Highway Infrastructure,” has gone down by more than 30 percent in that same time period. Table 1 provides the details of TDOT’s “Recommended Budget By Program and Funding Source” obtained from multiple years of budget documents and includes the links to the source documents and the page references. The table demonstrates that since fiscal year 2010-11, the last year of Governor Bredesen’s administration, there are multiple Programs, including Administration, Headquarters Operation, State Industrial Access, Planning and Research, Interstate System and Highway Infrastructure and TDOT as a whole, for which the funding was reduced by Gov. Haslam’s in his first year and have never recovered. Table 1  Department of Transportation  Recommended Budget by Program Source Source Source Source Source Sheet 46 of 656 Sheet 46 of 550 Sheet 46 of 558 Sheet 47 of 558…

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State Senate Transportation Committee Passes Amended Gas Tax Hike

The State Senate Transportation Committee passed an amended version of Gov. Haslam’s Gas Tax hike (SB 1221) on Monday. Among the changes were a removal of the inflation indexing provision, a cut in the governor’s proposed gas tax increase from 7 cents per gallon to 6 cents per gallon, and a cut in the proposed diesel fuel tax increase from 12 cents to 10 cents per gallon. Senate revisions to Gov. Haslam’s road-funding bill: – Reduces governor’s proposed gas tax increase from 7 cents per gallon to 6 cents. Phases increases in over 3 years with 4 cents in Fiscal Year 2018, 1 cent in FY 2019 and 1 cent in FY 2020. – Reduces governor’s proposed diesel tax increase from 12 cents per gallon to 10 cents. Phases in over 3 years with 4 cents in FY 2018, 3 cents in FY 2019 and 3 cents in FY 2020 – Alternative fuel tax increase of 8 cents phased in over 3 years. – Removes inflation indexing provision – Removes 3 percent rental car surcharge – Deepens Haslam’s proposed cut to state’s sales tax by reducing the 5 percent tax to 4 percent beginning July 1 as opposed to the 4.5 percent originally…

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‘Leadership Tennessee’ Promotes Political Agenda While Claiming to Be Non-Partisan

“Leadership Tennessee” the 10-month leadership education program hosted by Lipscomb University and funded in part by The Haslam Foundation, Haslam family’s Flying Pilot J, the Hyde Family Foundation and the Cornerstone Foundation of Knoxville, whose board at one time included Haslam, says it’s mission is to “foster[s] collaborative, non-partisan dialogue…” Two members of Class 1 of Leadership Tennessee (2013 to 2014) are currently candidates for governor: former Nashville Mayor Karl Dean and former Tennessee Commissioner of Economic and Community Development Randy Boyd. One member of Class 1, Renata Soto, is chairman of the board of the National Council of La Raza, a group funded in part by George Soros, and the Executive Director of Conexion Americas, a Nashville based group to which Boyd and his wife contributed approximately $250,000 in September 2016. Conexion Americas is listed as a Tennessee affiliate of the National Council of La Raza. The program was launched by a four member team: Tom Ingram, a political advisor to both Republicans and Democrats including Haslam, Lamar Alexander and Karl Dean when he was mayor of Nashville who has announced he will run in the Democrat 2018 primary for governor. Cathy Cate, the executive director whose husband Mark…

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Gov. Haslam Has a History of Supporting Tax Increases

Gov. Bill Haslam has a history of supporting tax increases. His current proposal to increase the gas tax by 7 cents per gallon and diesel fuel by 12 cents per gallon in 2017 is no aberration, it is part of a consistent pattern. In 2004, newly elected Knoxville Mayor Bill Haslam raised the city’s property taxes approximately 13%, but claimed the property tax rate was the lowest in several years. Former Lt. Governor Ron Ramsey challenged the claim saying that a reappraisal which lowered the overall rate, did not lower the overall percentage increase. Years earlier, Haslam was being schooled by his father on the need to raise taxes in Tennessee. Jim Haslam II, was a board member of Citizens for Fair Taxes, a group planning a public education blitz about Tennessee’s “state budget crisis” as a prelude to supporting Don Sundquists’ proposal for a state income tax. Fast forward to 2010 when Haslam, during his first gubernatorial campaign materials stated affirmatively that, “…taxes are job killers. The last thing we should do is raise taxes on a population that is already struggling and a small business community that has been forced to cut back,” and, that: “Tennessee already has the highest…

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House Transportation Committee Fails To Advance IMPROVE Act, Despite Multiple Tactics By Chairman Doss

  The House Transportation Committee failed to advance Gov. Haslam’s IMPROVE Act (HB 0534) on Tuesday, despite multiple tactics employed by Chairman State Rep. Barry Doss (R-Leoma), a vigorous proponent of the governor’s gas tax increase proposal, to accomplish that outcome. The committee voted instead to roll the vote over for another session in one week. Voting in favor of a one-week delay were Representatives David Alexander (R-Winchester), Dale Carr (R-Sevierville), Timothy Hill (R-Blountville), Bo Mitchell (D-Nashville), Courtney Rogers (R-Goodlettsville), Bill Sanderson (R-Kenton), Jerry Sexton (R-Bean Station), Terri Lynn Weaver (R-Lancaster) and Jason Zachary (R-Knoxville). Voting against the delay were Chairman Doss, and Representatives Barbara Cooper (D-Memphis), Bill Dunn (R-Knoxville), Kelly Keisling (R-Byrdstown), Eddie Smith (R-Knoxville), Ron Travis (R-Dayton), Sam Whitson (R-Franklin), John Mark Windle (D-Livingston). Chairman Doss initially declared that the motion to delay the vote for one week had failed, even though the roll call vote was 9 to 8 in favor the delay. When several members vocally objected, Chairman Doss declared the motion passed and the meeting was quickly adjourned. The day began in subterfuge, when Chairman Doss held a bill review session one hour prior to the scheduled full committee meeting. That bill review session was…

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Senate Transportation Committee Approves 15 Percent Increase in TDOT Budget That Includes $278 Million From IMPROVE Act Funding

Tennessee Star

The State Senate Transportation Committee voted on Monday to approve the Tennessee Department of Transportation’s (TDOT) 2017-18 budget of $2.2 billion, an increase of 15 percent over the 2016-17 budget of $1.9 billion. Five members of the committee voted in favor of the increased funding, while three passed on the vote. Senators Richard Briggs (R-Knoxville), Becky Massey (R-Knoxville), Jim Tracy (R-Shelbyville), Jeff Yarbro (D-Nashville) and Chairman Paul Bailey voted for the budget, while Senators Mae Beavers (R-Mt. Juliet), Janice Bowling (R-Tullahoma) and Frank Nicely (R-Strawberry Plains) passed. Senator John Stevens (R-Huntingdon) did not respond for the roll call vote. The additional $300 million one year increase in the budget incorporates $278 million in additional funding that comes from the 7 cents per gallon tax increase (and 12 cents per diesel gallon tax increase) included in Gov. Haslam’s controversial IMPROVE Act proposal. The move sets up a conflict between the current version of Gov. Haslam’s plan, which passed through the House Transportation Subcommittee last week in an unusual legislative maneuver which required the governor’s allies to bring in House Speaker Pro-Tem Curtis Johnson (R-Clarksville) to break a 4-4 tie in committee. The bill that passed through the House Transportation Subcommittee temporarily…

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State Rep Andy Holt Skewers pro-Gax Tax Hike Republicans in Blistering Facebook Rant

Tennessee Star - Rep. Andy Holt

Wednesday afternoon, State Representative Andy Holt let loose with a blistering rant against the House Transportation Committee’s arcane maneuvers to pass Gov Bill Haslam’s IMPROVE Act, going so far as to include a photo of a bag of thirty pieces of silver. Via Facebook: Well everyone, The Governor’s gas tax just passed out of the House Transportation Sub-Committee. That’s what you expected from the “fiscally conservative” super-majority controlled republican House of Representatives here in Tennessee, right? So. Gross. If allowed to pass, your taxes are about to go up by HUNDREDS of MILLIONS of dollars in Tennessee — literally!! You all need to know something. You need to know the truth. You deserve the truth. The “media” will likely tell you that the tax was “stripped out of the bill”. That’s not true, and they know it isn’t… This episode of political theater was a well orchestrated display. The bill will soon be returned to its original form so they can add back all the taxes, and possibly more… Worst part of all? The “media” has been told by countless people what’s going on behind the scenes. They’ve literally been shown proof of corruption, lies, and quid pro quo, but…

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Letter to the Editor: Today’s Shenanigans at House Transportation Subcommittee Deflate Tennessee Taxpayers

Tennessee Star

  Dear Tennessee Star, Conference room 16 was packed with an overflow standing room only crowd of “Ax the Tax” folks, and they listened respectfully to every word. The Gas Can Man was there bigger than life and getting all kinds of photo ops. Yet, in the end, the Tennessee taxpayer crowd left feeling defeated and deflated like those Tom Brady footballs. I read Rep. Andy Holt’s remarks about the hearing on Facebook. He describes the shenanigans at the Sub House Transportation Committee. Rep. Holt also gives you insight to our own “FAKE MEDIA” which is alive and well in Tennessee….except for one….the conservative Tennessee Star. Go to their web site and check out the latest fact gathering information on this Republican fiasco. To Chairman Terri Lynn Weaver’s credit, she defended and upheld what the taxpayers wanted which was the common sense Hawk Plan. When she voiced that opinion the crowd clapped loudly. But, the votes were not to be. Those who opposed the Haslam Improve Act were: Lt. Col. Courtney Rogers, Chairman Terri Lynn Weaver, Rep. Jerry Sexton, and Rep. John Mark Windle. Those voting in favor of the Haslam Improve Act (the Gas Tax Increase) were: Rep. David…

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Gas Can Man Leads Opposition to Haslam Tax Increase

Tennessee Star - Gas Can Man

    Gas Can Man cheered gas tax opponents at Wednesday’s legislative hearing. Making his grand entrance before the hearing, Gas Can Man strode in the room carrying a sign reading, “Haslam’s a Pain In My Gas.” Clearly the rock star of the event, he was photographed and videorecorded by admiring fans. Some even wore t-shirts bearing his likeness. He was surrounded by shouts of “Tank the Tax!” The packed hearing room was filled mostly with people there on behalf of the conservative group Americans For Prosperity, which opposes the tax. Having arrived early, they were able to grab a seat. People who couldn’t find a seat were sent to an overflow area outside the room where they could watch the proceedings on a TV screen. Among those who came from across the state was Chelsea Houk, who lives in Knoxville with her husband Zachary. The 26-year-old grew up in a family in which politics was rarely discussed to keep the peace. But now she finds that approach a misguided quest that doesn’t do anything to keep change at bay. “It provides a false sense of security,” she said. A farmhand who works with show horses, Houk these days finds…

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25 Percent of Highway Fund ‘User Fees’ Are Allocated to General Fund, Education, and Debt

One of the principles asserted by Governor Haslam in support of his IMPROVE Act and its proposed increase of 7 cents per gallon in the gas tax is that “users” of roads should pay for road construction. The gas tax is proper, he argues, because people who purchase gas to fuel their cars are the users of roads, and the gas tax is the best mechanism to charge them for that usage. For at least a decade, however, revenue sources originally designed to fund highway construction have been intermingled, and that “user” fee principle has not strictly been applied to the funding of road construction. The IMPROVE Act does not fully address the co-mingling of funds. The Highway Fund receives road construction “user fee” revenues from gasoline tax, motor fuel tax, gasoline inspection tax, motor vehicle registration tax and the motor vehicle title fees. At least 25 percent of those road construction “user fees” go to the General Fund, Education and Debt Service. Though the majority of these “user fee” revenues have been allocated to the Highway Fund, between 25 percent and 29 percent of those fees -ranging from $177 million to $196 million annually– have been diverted away from the…

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Nashville Talk Radio Led Opposition to Sundquist Income Tax But Is Split on Haslam Gas Tax

Tennessee Star - Steve Gill v Ralph Bristol

When former Gov. Don Sundquist proposed imposing a state income tax on residents of Tennessee in 1999, Nashville talk radio hosts Steve Gill and Phil Valentine led the horn-honking opposition that ultimately killed the unpopular proposal three years later in 2002. It is a different media landscape in 2017, as political controversy surrounds Gov. Haslam’s proposal to increase the gas tax to fund road construction. Like Sundquist, Haslam is a Republican. WLAC, 1510 am, is no longer in the local political talk business. 99.7 FM WWTN owns the local conservative talk market, with all local hosts,  beginning at 5 a.m. with Ralph Bristol, 9 a.m. with Michael Del Giorno, noon with Dan Mandis, and 3 to 7 p.m. with Phil Valentine. The day’s talk agenda is set by Nashville’s Morning News host Ralph Bristol, and he testified before the State Senate Transportation Committee in favor of Gov. Haslam’s plan, provided it is truly revenue neutral, which he says it currently is not. Former Nashville talk radio host Steve Gill, in contrast, came out guns a-blazing in opposition to the gas tax increase in a commentary posted today at The Tennessee Star. “17 years ago, talk radio lead the fight to stop…

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Commentary by Steve Gill: It’s Not About the Roads!

Tennessee Star - Steve Gill

As Governor Bill Haslam continues to tout the need for a massive tax increase in order to fund road and bridge construction and maintenance in Tennessee it is increasingly clear that the well-funded and heavily lobbied campaign for higher taxes actually has nothing to do with roads. It is actually about spending billions in surplus and increased recurring revenue on everything EXCEPT roads! A good magician is a master of misdirection. While you are captivated by what they are doing with their right hand the real trick is happening in the left hand. Governor Haslam is using the same sort of misdirect move to hide the truth about his tax increase scheme. While Tennessee currently has a surplus of a billion dollars AND an extra billion dollars in recurring revenue the Governor is fighting against any an all efforts to spend ANY of that money on roads. He prefers to impose higher taxes on Tennessee drivers with a seven cent increase in the gasoline tax and a twelve cent increase in the diesel tax (plus additional fees and taxes) that will generate about $300 million a year more for state and local road projects. State Representative David Hawk has proposed…

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Commentary: Oppose Wednesday’s Vote to Raise Tennessee’s Gas Tax

There’s no denying that Tennessee’s infrastructure is in need of repair. But Gov. Bill Haslam’s proposed gas tax increases to fund the projects—which the state House of Representatives will vote on this Wednesday – isn’t the right solution. Instead, lawmakers should use money already in the state budget, which is more than enough to meet our transportation needs. The key component of Gov. Haslam’s plan is to increase the state’s tax by 7 cents a gallon on gasoline and 12 cents a gallon on diesel – respective increases of 33 percent and 65 percent over what we currently pay today. Not only that, but it will also be indexed to inflation every other year. That means each time you go to the pump, you’ll pay more to the state and have less money to spend on your personal needs—and it will get worse every two years. On top of the gas tax increase, Gov. Haslam wants to nickel-and-dime us with an increase in vehicle registration fees, too. All combined, the governor’s proposal includes nearly $300 million in higher taxes every year. And that’s not all. The proposal would also give municipalities a bite at the tax apple, allowing them to hold referendums on raising local sales taxes to…

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Shenanigans at the State Capital

Tennessee Star Letter to the Editor - Shenanigans at the State House

  Dear Tennessee Star, Shenanigans at the State Capitol never cease. The proposed Gas Tax is a tax that will definitely affect every single Tennessee citizen in more ways than one. The Transportation House Sub Committee suddenly adjourned their meeting last week and the next meeting is at HIGH NOON, March 1 in LP Room 16.  I wonder if more time was needed in order to twist more arms in order to vote a certain way. If you like paying more taxes, pay this article no mind. But, if you realize that many politicians can’t spend enough Tennessee citizens’ money…read on and contact the House Transportation Sub Committee members below and then pass this information on to others and ask them to do the same. Haslam’s Gas Tax Proposal The governor proposes a 7 cent increase in gas tax and 12 cent increase in diesel tax Also, there is a pesky automatic index to future gas tax increases…which means this proposed gas tax will automatically increase. That means, this gas tax will keep on taking bigger bites out of your wallet as time moves on, and you, the taxpayer will have no say in the matter. Haslam says that it will be “revenue neutral.” Not buying that one. The math doesn’t add up. Keep in mind of that pesky automatic increase that…

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Dept. of Revenue Confirms Pilot Flying J Will Hold on to Extra Cash from Gas Tax Increase for 20 to 51 Days

Last week The Tennessee Star asked State Sen. Paul Bailey, chair of the Senate Transportation Committee and general manager and vice-president of Charles Bailey Trucking Company, about the possible impact Gov. Haslam’s proposed gas tax increase will have on Pilot Flying J’s business operations and whether it would be in the public interest to have a full and open discussion in a committee hearing about this issue. Pilot Flying J, the fourteenth largest privately held company in the country, owns and operates more than 500 gas and diesel truck stops around the country, approximately 40 of which are in the state of Tennessee. The Haslam family owns Pilot Flying J, and Gov. Haslam, while not involved in the operation of the business, has a significant equity interest in the company, though he has never fully disclosed the exact amount of that interest. While supportive of discussing the general issue of whether the “float” that unremitted fuel taxes benefit a fuel supplier, Sen. Bailey raised the additional question of exactly when the taxes collected are paid to the Tennessee Department of Revenue: “The payer of these taxes remit payment to the state upon delivery to their terminals; therefore, the only ‘float’ comes to…

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Governor’s ‘Transparent Tennessee’ Does Not Apply to Fuel Tax

Three years ago when the “Transparent Tennessee” website was launched, Governor Haslam said: “A state government that is accountable to Tennessee taxpayers is an important part of being customer-focused, efficient and effective. The advanced function of this website will allow citizens more access to information about how state dollars are spent.” Last year Haslam disclosed that the 2016 budget would repay the transportation fund $261 million dollars that was transferred to the general operating fund during the Sundquist and Bredesen administrations to close budget shortfalls. “We have a covenant with our citizens that the gas tax charged by the state at the pump is dedicated to transportation-related purposes and not something totally unrelated,” State Sen. Jim Tracy (R-Shelbyville) said several months before the 2016 legislative session began, urging that this repayment be made. This is called “dedicated funding” and according to TDOT, “[n]o money from the state’s general fund, which relies on the sales tax, is used in any of the programs of the Tennessee Department of Transportation. But it seems that not all state fuel tax monies reach TDOT before being diverted to the general fund. Issues raised after Wednesday’s Sumner County gas tax town hall call into question the transparency…

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More Unanswered Questions at Gov. Haslam’s Sumner County Gas Tax Town Hall

On Wednesday evening, Governor Haslam spoke about his proposed 7 cent gas tax and 12 cent diesel tax increase at Sumner County’s Station Camp High School to a group of about 300 people, around 100 of whom received a personal email invitation from County Executive Anthony Holt. The governor, joined by Department of Transportation Commissioner John Schroer on a stage with local elected officials, delivered an abbreviated and less energetic version of his state of the state address that he had delivered at his previous town hall style meetings. These events have afforded the opportunity to fact-check the claims the governor has been making since the launch of his IMPROVE Act at a press conference on January 18, and Wednesday’s Sumner County Town Hall showed that the number of unanswered questions has not diminished as his tour of the state has gone on. According to the governor, Tennessee does not use bond debt to fund roads, but his budgets for 2016-17 and 2017-18 included $88 million and $80 million in bond debt, respectively. The Tennessee Star’s Laura Baigert pressed the governor on claims that this year’s budget, like past budgets, keeps various funds separate. How, she asked, did the governor…

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House Transportation Subcommittee Vote on Haslam Gas Tax Scheduled Today, No Representative from Pilot Flying J Has Yet Been Called to Testify

The first test of Gov. Haslam’s proposal to increase the gas tax to fund road construction is scheduled to take place when the House Subcommittee on Transportation votes today on whether to move the bill to the full Transportation Committee. The Subcommittee has heard testimony from various supporters and opponents of the bill, but to date has not yet heard testimony from representatives of one private corporation that will be impacted by the proposed gas tax increase: Pilot Flying J, the company owned and operated by Gov. Haslam’s family. Questions have been raised by opponents about the potential conflict of interest posed by Governor Haslam’s proposed fuel tax increase if it benefits the privately held, family owned business Pilot Flying J, a distributor and a retailer of gas and diesel fuel. Critics of any fuel tax increase, whether it is the governor’s plan or the alternative Hawk plan, have questioned whether cash flow increases on the distribution side from collecting and holding the increased tax and/or increased profits on the retail side, could aid Pilot’s recovery from its $162 million payout related to the company’s rebate fraud case. The Tennessee Star asked committee members whether a representative from the ranks…

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Pure Foods Goes Bankrupt After Benefiting From $1.2 Million in Tennessee State Economic Development Funds

Less than two weeks before Governor Haslam introduced his IMPROVE Act centered on a gas tax increase for road funding, Pure Foods, Inc., a recipient of $1.2 million in state economic development funds, filed for bankruptcy.   The $1. 2 million from the state’s FastTrack Economic Development (ED) Fund did not go directly to Pure Foods. Instead, it was allocated for use by KEDB for construction of a speculative building that Pure Foods leased for 10 years.   According to the Kingsport Tennessee Times News, in March 2015, the Canadian based gluten-free snack food company, Pure Foods, Inc., was set to establish its U.S. headquarters at the Gateway Commerce Park in Kingsport, Sullivan County.  The deal included an investment of $22 million, an 80,000-plus square foot facility, and the creation of 273 new jobs generating an annual a payroll of $8 million. The Kingsport Economic Development Board (KEDB) and the Kingsport Chamber of Commerce also supported the project by providing financial assistance and various incentives, including the purchase of 33 acres of land in the Gateway Commerce Park for $6.5 million borrowed from First Tennessee Bank. According to the Transparent Tennessee website’s FastTrack Project Database, ED grants provide additional support for…

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Gov. Haslam Announces Steven Smith ‘Will Lead Administration’s Efforts on the IMPROVE Act’

Gov. Haslam announced on Monday that Steven Smith “who currently serves as senior advisor for policy and strategy, will become senior advisor to the governor.” “In his new role, Smith will lead the administration’s efforts on the IMPROVE Act [Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy], the governor’s comprehensive plan to cut taxes on food and manufacturing while updating how the state provides Tennesseans the safe and reliable transportation network needed to support future job growth,” the governor’s statement said. Smith joined the governor’s staff last July and has helped shape his 2017 NextTennessee legislative agenda, taking on the lead role in developing the governor’s plan to increase broadband access to Tennessee’s unserved citizens. On Tuesday, Gov. Haslam “filed his Next Tennessee legislative agenda for the 2017 session of the 110th General Assembly,” his office reported. The IMPROVE Act is one of four legislative proposals from the governor which comprise that legislative agenda: 1) The Tennessee Reconnect Act is Haslam’s proposal to make Tennessee the first state in the nation to offer all Tennessee adults without a degree access to community college tuition-free – and at no cost to taxpayers. Tennessee would become the first state in…

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Details of Gov. Haslam’s Gas Tax Proposal From His State of the State Address

Gov. Haslam dedicated about one-third of his State of the State address, delivered to the General Assembly on January 30, to his gas tax proposal. Haslam refers to his proposal using the acronym in the bill that includes the details: the IMPROVE Act (Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy). You can read the complete text of the address here: Here’s the full excerpt of the address related to gas tax proposal, with emphasis added by The Tennessee Star: With the IMPROVE Act we’re proposing to increase the gas tax 7 cents and the diesel tax 12 cents per gallon, and all new revenue goes only to address our transportation needs. The legislation will mean 962 projects in all 95 counties, both urban and rural. It will also mean 78 million dollars annually in increased revenue for counties and 39 million dollars annually in increased revenue for our cities. Scores of mayors across Tennessee – cities and counties, rural and urban – have told me that, if we don’t do something to address the fuel tax, they will have no alternative but to raise the property tax in their municipalities. I know some of you think we…

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Gov. Haslam Proposes Free Community College For ‘All Adults’ in State of the State Address

Gov. Haslam proposed free community college for “all adults” in his State of the State address last Monday “I am proposing that Tennessee become the first state in the nation to offer all adults access to community college free of tuition and fees,” Haslam said: Just like the Tennessee Promise, Tennessee Reconnect will provide last-dollar scholarships for adult learners to attend one of our community colleges for free – and at no cost to the state’s General Fund. With the Reconnect Act, Tennessee would be the first in the nation to offer all citizens – both high school students and adults – access to a degree or certificate free of tuition and fees. No caps. No first come, first served. All. Just as we did with Tennessee Promise we’re making a clear statement to families with Reconnect: wherever you might fall on life’s path, education beyond high school is critical to the Tennessee we can be. We don’t want cost to be an obstacle anyone has to overcome as they pursue their own generational change for themselves and their families It was unclear if by “all adults” he intended to include illegal aliens currently residing in the state. In the…

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Ralph Bristol’s Exclusive Interview With Gov. Haslam About His Gas Tax Proposal

One day after he announced his proposal to increase the tax on gas by 7 cents, from 21 cents per gallon to 28 cents per gallon, Gov. Bill Haslam gave an exclusive in-studio interview to Ralph Bristol, host of Nashville’s Morning News on 99.7 FM, WWTN, on January 18. Haslam made the case for his gas tax proposal, which he elaborated on in his “State of the State address” at the Capitol on January 30, which the General Assembly is now considering. “Can you legitimately bring that [Hall Income Tax cut]  forward to balance now against the gas and other tax increases to make it an even balance?” Bristol asked to begin the interview. “Sure. Let’s start here,” Haslam answered. “Our administration and the legislature has already cut $270 million in taxes. The most any administration or legislature had ever done before was $60 million. We’re proposing another $270 million cut in this budget,” the governor continued, adding: Your point is we already cut the Hall Tax last year. But we didn’t. We passed a bill to do that. It still has to come out of the budget. It’s like you and your spouse saying were going to make a…

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Commentary: Gas Tax Increase Creates Problems for School Budgets

Tennessee Star

Public education must remain a high priority in Tennessee. That should be reflected in Governor Haslam’s State of the State. We have made a strong commitment in the terms of taxpayer dollars. We have simply played catch-up the last few years, especially in regards to funding our public schools. The Tennessee Constitution set forth the purpose of public education: “The state of Tennessee recognizes the inherent value of education and encourages its support. The General Assembly shall provide for the maintenance, support, and eligibility standards of a system of free public schools.” It is worth the reminder to reflect on that purpose as we enter legislative session at the Tennessee General Assembly. Living and working in Nashville, and operating a motor vehicle, it is clear that “Music City” is also “pothole city.”  We have no problem with increasing the budget to spend more on improving our roads, from which we all derive the benefit. Under Governor Haslam’s proposal, we would pay an additional 7 cents per gallon on gasoline and 12 cents per gallon on diesel in Tennessee. In addition, the plan would reduce the state’s grocery sales tax rate to 4.5 percent, down a half-percentage point. Our concern is the…

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How Will Gov. Haslam’s Gas Tax Proposal Impact His Family’s Pilot Flying J Company?

Gov. Haslam’s proposal to increase the gas tax by 7 cents per gallon and the diesel tax by 12 cents per gallon will have an impact on the family-owned Pilot Flying J company, which “operates over 650 travel centers in 43 states and Canada,” 31 of which are located in Tennessee, and is the 14th largest privately held company in the United States with $22 billion in annual revenues according to Forbes. “Located along interstates, the travel centers cater to both professional drivers and motorists selling gas, diesel, convenience store goods and fast food. Headquartered in Knoxville, Tennessee, the company was formed in 2010 when Pilot Travel Centers merged with Flying J to create a new company.In October 2015, the Haslam family announced that it had bought out the minority stake of private-equity firm CVC partners,” Forbes reports. Exactly what that impact will be has been the subject of scrutiny and debate. On the one hand, higher fuel prices are likely to have a dampening effect on the demand for gas and diesel fuel at Pilot’s retail facilities in Tennessee. That impact is not likely to be that great, since, as a percentage of the total retail price of these fuels, the tax…

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Grassroots Pundit: What Does Governor Haslam’s Revenue Neutral Gas Tax Increase Mean to Tennessee Families?

Family

Governor Haslam introduced his “revenue neutral” IMPROVE Act (Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy) late last month. The proposed bill focuses primarily on increasing the fuel (gas and diesel) tax to fund transportation initiatives and offsetting the increases with other tax cuts. Under the governor’s proposal, the state tax on gasoline will increase from 21 cents per gallon to 28 cents per gallon. The state tax on diesel fuel will increase from 18 cents to 30 cents per gallon. Ominously, the tax will be indexed to increase each year based on inflation. The plan proposes tax cuts of $270 million annually, while increasing revenues through taxes and fees by $278 million this year. The taxing procedure that allows government to receive the same amount of money despite changes in tax law is the definition of “revenue neutral.” This was a strategic move by the Governor to combat the obvious and predictable opposition to any tax increase given the state’s budget surplus in excess of $1 billion. But how neutral is the IMPROVE Act for Tennesseans? At least one group is trying to explain what the gas tax increase would cost the average driver. The Transportation Coalition…

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