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Will Tennessee House Republicans go along with retooled road funding plan?

Tennessee Governor Bill Haslam talks about the commitment the state has to Volkswagen Wednesday outside the Tennessee Department of Transportation Management Center in Chattanooga. Tennessee General Assembly House Speaker Gerald McCormick listens, back right. The governor had just come from visiting with workers inside the plant Wednesday afternoon, Oct. 7, 2015.
Tennessee Governor Bill Haslam talks about the commitment the state has to Volkswagen Wednesday outside the Tennessee Department of Transportation Management Center in Chattanooga. Tennessee General Assembly House Speaker Gerald McCormick listens, back right. The governor had just come from visiting with workers inside the plant Wednesday afternoon, Oct. 7, 2015. Tennessee Governor Bill Haslam talks about the commitment the state has to Volkswagen Wednesday outside the Tennessee Department of Transportation Management Center in Chattanooga. Tennessee General Assembly House Speaker Gerald McCormick listens, back right. The governor had just come from visiting with workers inside the plant Wednesday afternoon, Oct. 7, 2015.

By Andy Sher 6 min read

What changed

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.Provisions remaining the same* Maintains reduction of corporate taxes on manufacturers in Tennessee.* Keeps vehicle registration fee increase* Keeps $100 electric vehicle fee* All fuel tax is allocated to the state’s Highway Fund* Maintains a local government sales tax option.

NASHVILLE – 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.

photo State Senate Majority Leader Mark Norris, R-Collierville, attends a floor session floor session in Nashville, Tenn., on Thursday, April 16, 2015. Norris opposed a bill seeking to make the holy Bible the official book of Tennessee. (AP Photo/Erik Schelzig)

Senate Majority Leader 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.

Those increases would be phased in over a three-year period. The new plan also eliminates a controversial provision that sought to peg future increases to inflation. And it drops yet another proposal to raise vehicle rental fees by 3 percentage points.