Camping World's 40 x 80 foot American Flag folds over Interstate 75 south of the East Ridge exit on June 29, 2017. With the Fourth of July holiday coming up Americas will travel during the celebration of the nation's 241st anniversary of the Declaration of Independence from Great Britain.A new, 4-cent increase in Tennessee's gasoline tax goes into effect Saturday - just in time for what promises to be the busiest Fourth of July travel weekend ever.
Gov. Bill Haslam's new Improve Act gas tax aims to address a $10.5 billion backlog in road repairs and updates by prioritizing 962 projects across all of Tennessee's 95 counties.
While some may see fireworks over the first hike in the state's gas tax in nearly 30 years, there's still good news at the pump: Gas prices for the Fourth of July weekend are the cheapest since 2005, according to website GasBuddy, which says the average U.S. price is $2.21 per gallon, well under the 10-year average of $3.14.
Tennessee's average gas price clocked in at $1.99 per gallon Thursday with Chattanooga's lowest price at $1.78, according to GasBuddy, while Georgia's average was $2.08 and Alabama's was $1.97. For the first time in GasBuddy's 17-year history, gas prices will be lower on July 4 than on New Year's Day.
"Perhaps we can finally get rid of the myth that gas prices go up for the holiday," said Patrick DeHaan, GasBuddy senior petroleum analyst.
This Independence Day, a record-breaking 44.2 million Americans will travel 50 miles or more away from home, taking to the nation's roads, skies, rails and waterways, according to AAA. With 1.25 million more travelers than last year, 2017 will be marked as the most traveled Independence Day holiday weekend ever.
"Combined, strong employment, rising incomes and higher consumer confidence bode well for the travel industry, in particular this Independence Day weekend," said Bill Sutherland, AAA senior vice president, Travel and Publishing.
While Chattanoogans will hit the road on the Fourth, plenty of travelers will head toward the Scenic City, too.
"Fourth of July is one of our bigger weekends, for sure," said Thom Benson, spokesman for the Tennessee Aquarium, which stays open on the Fourth. On Monday, the aquarium will host an evening cruise of the River Gorge Explorer that will return to its pier downtown ahead of the fireworks show at 9:45 p.m., so passengers can disembark and enjoy the display on shore.
"Based on consumer confidence, low gas prices, and demand for authentic experiences, we are anticipating great visitation for the July Fourth holiday," Chattanooga Convention and Visitors Bureau President Bob Doak said. "Chattanooga is one of the top travel destinations in the South, with tourists leaving an estimated $1 billion economic impact."
Under the IMPROVE Act, 3-cent gas tax increases will follow in 2018 and 2019 for a total of 10 cents per gallon when the tax is fully implemented. Also under the IMPROVE Act, the sales tax on grocery food will drop from the current 5 percent to 4 percent. The IMPROVE act also increases a number of fees, including a $5 increase on annual car registrations.
Contact staff writer Tim Omarzu at tomarzu@timesfreepress.com or www.facebook.com/MeetsForBusiness or on Twitter @meetforbusiness or 423-757-6651.