Gas Tax May Increase For The First Time In 25 Years

Momentum is mounting for a possible proposal to raise the state’s gas tax for the first time in 25 years.
Gov. Bill Haslam told The Tennessean that he thinks a legislative proposal on the issue is close, and could be introduced in the next General Assembly, which convenes in January.
“At some point and time soon, either this year or next year, I think there will be a bill about gas tax,” he told The Tennessean editorial board.
The push comes as a group representing 40 mayors in Middle Tennessee sent a letter urging Haslam and state lawmakers to find new sources of revenue to pay for transportation needs. Chambers of commerce also are pushing the idea of increasing the gas tax.
Currently, residents pay a total of 39.8 cents tax on each gallon of gas purchased – 21.4 cents is state tax and 18.4 cents is federal tax.