NASHVILLE – Republican Gov. Bill Haslam’s proposal to raise Tennessee’s gas tax for the first time in more than 27 years is causing a political traffic jam among GOP lawmakers who are competing to offer anything-but-an-increase alternatives.
The state ranks fifth nationwide in terms of years spent with no fuel-levy boost.
Majority House Republicans said there will definitely be several counters to Haslam’s proposed Improve Act, which seeks to boost highway funding in a state that has $6 billion in previously approved projects awaiting action and another $4.5 billion in projects on the drawing board, some of which face up to a half-century wait for funding.
Haslam is calling for lawmakers to increase the state’s 21.4-cents-per-gallon gax tax by 7 cents to 28.4 cents, while boosting the 18.4-cents-per-gallon diesel tax by 12 cents to 30.4 cents.
Haslam said the fuel tax hikes will generate $227.8 million. Along with several other fee or tax increases, including a $5 increase in vehicle registration fees, the administration projects it would have $278 million more to begin attacking the state’s estimated $10.5 billion backlog of road and highway projects that the governor maintains are necessary to keep Tennessee moving forward.