Haslam’s gas tax plan
Proposal: Hike gasoline and other vehicle-related taxes to raise $350 million a yearHow much: 6 cents for gasoline, 10 cents for diesel, $5 increase in registration fees, offset by some $400 million in tax reductions elsewhereWhat for: Backlog of nearly 1,000 bridge and highway improvements worth $6 billion plus funding for new projectsSharing the wealth: The state share is about $245 million, with $70 million for counties, $35 million for citiesSource: Governor’s office
NASHVILLE – Gov. Bill Haslam’s proposed road funding bill, up for final House floor consideration today, would affect dozens of Southeast Tennessee interstate, highway and bridge projects totaling some $1.34 billion, figures show.
An estimated $600 million of the projects are in Hamilton County, including a $171.5 million widening of Interstate 24 from the Georgia line near I-59 to U.S. 27 in downtown Chattanooga.
The House and Senate each passed the bill Wednesday, but the House needs to agree to a Senate amendment involving state-paid property tax relief for disabled veterans.
Haslam’s IMPROVE Act raises fuel taxes for the state’s dedicated highway fund for the first time since 1989. Gas would rise by 6 cents, to 27.4 cents per gallon, and diesel would rise 10 cents, to 28.4 cents, over the next three years.