Citizens get update on gas, diesel tax

MIKE WEST
Courier Editor

Citizens from Cannon and surrounding counties got a chance to express their opinions on the proposed gas and diesel fuel taxes.

The meeting, featuring state Rep. Mark Pody and state Sen. Mae Beavers, was held at the Cannon County Senior Citizens Center. More than 50 taxpayers were on hand for the Friday, February 17 session.

A plan proposed by Gov. Bill Haslam would increase the state's gas tax by 7 cents and the diesel tax by 12 cents while cutting Tennessee's sales and businesses taxes.

The fuel tax plan also includes a $5 increase in car registration fees, a new $100-a-year fee on electric vehicles, in addition to charges on rental cars and natural-gas vehicles.

"To help offset that tax increase" Haslam wants to cut sales tax by $55 million, said Pody, adding Haslam has said those taxes would raise an additional $278 million a year that would be split between the state and local governments.

The gas tax hike would be the first in Tennessee since 1989. The governor has said the current 21 cents tax has been eroded by inflation and improved vehicle fuel efficiency.

Another suggestion, Beavers said, is to take the 'strings' off federal funds. One example would be to modify Tennessee's Open Container Law, which runs counter to federal requirements.

Tennessee's Open Container Law is simple and allows open containers of alcohol in a vehicle as long as the driver isn't participating. This easy out allows motorists to hand the alcoholic beverage to a passenger in the vehicle, thus circumventing the law.

Because of this, a portion of the federal highway funds can't be used for road building and must, instead, be used for drunk driving enforcement, she explained.

"We're actually the best in the country when it comes to financing road building," Beavers said, adding that Tennessee is falling behind on projects.
"Other states are actually raising their gas tax," Pody said.

Tennessee needs about $500 million a year to pay for road repairs and other similar projects. TDOT has outlined current needs at $6 billion with long-term needs at $10 billion.

"No matter what plan we approve funds will go to Cannon County," Pody said. "100 percent (of the legislature) is in favor of road improvements."
"We are No. 3 in the country when it comes to highways. We are in good shape here, but I never want us to fall behind," Beavers said.


The proposed gas tax will be a major issue before the Tennessee Legislature. In addition to Haslam's proposal several hybrid plans are being proposed.

One plan would equal the amount of tax paid by gas and diesel users. Pody said another plan would take the funds generated by gas taxes and move it exclusively to the Tennessee Department of Transportation.

"We're all on the same team. Some people want to run with the ball and others want to pass it," Pody said.