Haslam Speaks on IMPROVE Act

Gov. Bill Haslam was in Franklin County on Monday discussing his plan for a 7 cent tax increase per gallon on gasoline and 12 cents on diesel to go toward roadway improvements.
The purpose of the event, was to provide a forum on a plan focusing exclusively on increasing much-needed funding to repair and maintain safe highways and bridges throughout Tennessee. Haslam has also proposed that sales tax be reduced on food products.
Haslam’s agenda includes the IMPROVE Act, which stands for “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy.”
The IMPROVE Act, besides increasing the road user fee by 7 cents for a gallon of gas and 12 cents for a gallon of diesel, also increases car registration fees by $5 for the average passenger vehicle.
It places an annual road user fee on electric vehicles and increases charges on vehicles using alternative fuels.
The proposal also includes a 3 percent charge on rental cars and changes the state’s open container law to allow the Tennessee Department of Transportation flexibility to use $18 million in existing federal dollars on roads.
Under the IMPROVE Act, the state sales tax on groceries will fall to 4.5 percent – for a total one percent reduction under this administration since 2011.