Tennessee Governor Bill Haslam talks about education and his budget to the editorial board at the Times Free Press.NASHVILLE – Republican Gov. Bill Haslam on Wednesday proposed hiking Tennessee gas and diesel taxes for the first time since 1989.
The governor argued the proposed increases will help provide $278 million more a year in new funding needed to cut backlogs on maintenance and new construction on hundreds of road, highway and bridge projects statewide.
But in an effort to get fellow Republicans in the GOP-run General Assembly on board in light of huge state surpluses in non-transportation revenues, the governor is also recommending a corresponding $270 million in cuts.
The governor is asking for a 7-cent-per-gallon boost in the state’s gas tax, pushing the current 21.4-cent levy to 28.4 cents per gallon. He wants a 12-cent-per-gallon boost for diesel, which is now 18.4 cents per gallon.
Another provision would match future price increases every two years to the Consumer Price Index, a measure of inflation, increase car registration fees by $5 for the average passenger car, a new 3 percent charge on rental cars and a new $100 fee on electric vehicles.