Signed by Governor Bill Haslam

Full Bill Text

Vote Smart's Synopsis:

Vote to concur and pass a bill that increases the tax on regular gasoline in Tennessee by 6 cents and diesel fuel by 10 cents incrementally over the next 3 years.

Highlights:

• Increases the gasoline tax to (Sec.3):

• 24 cents per gallon, effective July 1 2017;

• 25 cents per gallon, effective July 1st 2018; and

• 26 cents per gallon, effective July 1st 2019.

• Increases the diesel gas tax to (Sec. 4):

• 21 cents per gallon, effective July 1, 2017;

• 24 cents per gallon, effective July 1, 2018; and

• 27 cents per gallon on July 1, 2019.

• Specifies that the revenue from the increased gas taxes will be distributed in the following manner (Sec. 3):

• 25.4% to counties;

• 12.7% to municipalities; and

• 61.9% to the highway fund.

• Specifies that a county will be eligible to receive revenues from the increased gas taxes only if it appropriates those funds for road purposes in an amount not less than the average of the 5 preceding fiscal years (Sec. 3).

• Requires the following changes in vehicle registration fees (Sec. 1):

• Increases fee for standard vehicles by $5;

• Increases fee for private and commercial vehicles by $10.00;

• Increases fee for freight motor vehicles by $20; and

• Establishes an electric motor vehicle charge of $100.

• Specifies that revenue from the increased registration fees will be appropriated to the Tennessee Highway Fund (Sec. 1).

• Specifies that the diesel gas tax increase will not apply to commercial carriers (Sec. 4).

• Reduces the Hall income tax by 1% each year until the tax is eliminated (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that increases the tax on regular gasoline in Tennessee by 6 cents and diesel fuel by 10 cents incrementally over the next 3 years.

Highlights:

• Increases the gasoline tax to (Sec.3):

• 24 cents per gallon, effective July 1 2017;

• 25 cents per gallon, effective July 1st 2018; and

• 26 cents per gallon, effective July 1st 2019.

• Increases the diesel gas tax to (Sec. 4):

• 21 cents per gallon, effective July 1, 2017;

• 24 cents per gallon, effective July 1, 2018; and

• 27 cents per gallon on July 1, 2019.

• Specifies that the revenue from the increased gas taxes will be distributed in the following manner (Sec. 3):

• 25.4% to counties;

• 12.7% to municipalities; and

• 61.9% to the highway fund.

• Specifies that a county will be eligible to receive revenues from the increased gas taxes only if it appropriates those funds for road purposes in an amount not less than the average of the 5 preceding fiscal years (Sec. 3).

• Requires the following changes in vehicle registration fees (Sec. 1):

• Increases fee for standard vehicles by $5;

• Increases fee for private and commercial vehicles by $10.00;

• Increases fee for freight motor vehicles by $20; and

• Establishes an electric motor vehicle charge of $100.

• Specifies that revenue from the increased registration fees will be appropriated to the Tennessee Highway Fund (Sec. 1).

• Specifies that the diesel gas tax increase will not apply to commercial carriers (Sec. 4).

• Reduces the Hall income tax by 1% each year until the tax is eliminated (Sec. 2).

Full Bill Text