Haslam Won’t Propose Gas Tax Increase

Governor Haslam says he won’t propose an increase in the state’s gas tax. In budget hearings last week, transportation officials said changes to the tax may be needed in coming years. Every time you fill up your car, the state collects 21.4 cents per gallon, which pays for road construction.  Costs are rising for T-DOT, and the sluggish economy means the state isn’t bringing in as much gas tax revenue. Despite all that, Governor Haslam says a gas tax increase won’t be a priority for his administration.

” It’s a bigger issue, an issue around the country and with the federal portion of that as well. We’re not close to proposing a change on that. But I think all of us can look and say logically 10 years from now there’s no way we’re doing it the way we are now.”

One catalyst for change may be cars with higher gas mileage and electric cars that use no gas at all.  At a budget hearing last week, T-DOT Commissioner John Schroer told the governor that the growing popularity of these vehicles means the state and federal governments may need to revisit how gas taxes are collected. The state’s gas tax has remained unchanged since 1989