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 proposed by the governor.

– Veterans and elderly/disabled persons state-funded property tax relief: Increases eligible value on homes for veterans from $100,000 to $135,100. Increases values of homes for the elderly and disabled from $23,500 to $27,000 for elderly/disabled. Adjusts for inflation in future years.

via: Times Free-press

The Times Free Press reported:

The state Senate Transportation Committee on Monday approved a retooled version of Gov. Bill Haslam’s proposed gas tax plan to fund transportation projects, but whether the new deal survives an upcoming road test in the House remains to be seen.

Senate Majority Leader [Norris] said the changes, which he negotiated with fellow Republican Haslam, guarantees most Tennesseans will save more money through various cuts in other taxes than they would pay in higher gas and diesel taxes.

Among other things, the agreement, approved by Transportation Committee members on a seven to one vote, reduces Haslam’s proposed gas tax increase from 7 cents to 6 percents a gallon and the hike on diesel from 12 cents to 10 cents.

Gov. Haslam’s provisions surviving the Committee’s tinkering, include:

  • Increase in the vehicle registration fee
  • $100 electric vehicle fee
  • Reduction of corporate taxes on manufacturers in Tennessee
  • Local government sales tax option
  • A stipulation that all fuel tax is allocated to the state’s Highway Fund

The Committee passed the altered plan by a large margin of 7-1.

Voting in favor of the amended gas tax hike were State Sen. Jim Tracy (R-Shelbyville), State Sen. Janet Bowling (R-Tullahoma), State Sen. Richard Briggs (R-Knoxville), State Sen. Becky Massey (R-Knoxville) , State Sen. Jeff Yarbro (D-Nashville), State Sen. John Stevens (R-Huntington), and State Sen. Paul Bailey (R-Sparta), Chairman of the State Senate Transportation Committee.

State Sen. Mae Beavers (R-Mt. Juliet) cast the lone vote against the amended gas tax hike.

State Sen. Frank Nicely (R-Strawberry Plains), who is listed as the 2nd vice-chair on the committee’s website, was not present for the vote.

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6 Thoughts to “State Senate Transportation Committee Passes Amended Gas Tax Hike”

  1. bobby enslight

    Paul Bailey is a big tax raiser that rino should be booted out he drafted the largest tax increase in the history of white county as a county commissioner

  2. […] When the State Senate Transportation Committee passed an amended version of Gov. Haslam’s Improve Act last week that raised the gas tax by 6 cents per gallon rather than 7 cents per gallon, Beavers was the sole no vote. […]

  3. Bruce T Williams

    With the great reporting that the Tn Star has been doing , look at Sun edition and see what our great editor “jack ” had on his mind . The KNS is a failing newspaper and I guess that the 5000 newspapers that Pilot buys and gives away each Fri prevents the KNS from ever opposing his view on anything . BTW their coffee is as worthless as the free newspaper

  4. […] Reform (ATR), declared his support for the amended version of Gov. Haslam’s IMPROVE Act that passed the Senate Transportation Committee last week. That amended version reduced the proposed gas tax […]

  5. Mary Cook

    Just another way for Haslem’s business to make more money for themselves able to hold the tax up,to 50 days before sending it to the state they can invest the taxpayers $ for themselves . Drain the swamp vote out these money makers getting lobbying money from the companies making money off taxpayers in repairing the roads . All about the money in politicians pockets . They don’t represent us just themselves to get to be millionaires. Thank you Mrs Beavers for having common sense I will vote for you . Do not vote for Beth Harwell she is a snake

  6. Ruth Wilson

    Like Joshua said in the Old Testament, “Who is on the Lord’s side.” Looks we found the one on the Lord’s side and that is Senator Mae Beavers.
    For God & Country