https://www.youtube.com/watch?v=p4r9OK6jWi0&feature=youtu.be
NASHVILLE – Joined by mayors from across the state and leaders in the manufacturing and trucking industries, Tennessee Gov. Bill Haslam today announced a comprehensive and strategic plan to cut taxes on food and manufacturing while updating how the state provides Tennesseans the safe and reliable transportation network needed to support future job growth.
The IMPROVE Act, “Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy,” is the first piece of Haslam’s NextTennessee legislative plan, policy proposals aimed at building and sustaining economic growth and the state’s competitiveness for the next generation of Tennesseans.
The IMPROVE Act increases the road user fee by 7 cents for a gallon of gas and 12 cents for a gallon of diesel and 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. Fuel taxes would be indexed – but also capped – to the Consumer Price Index in order to keep up with the rate of inflation.
The IMPROVE Act would bring in $278 million in new dollars to the state for projects while limiting the impact on the average Tennessee motorist to approximately $4 a month. All funds would go toward transportation, including the 2 percent typically reverted to the General Fund, to provide funding for 962 projects across all 95 counties plus an additional $39 million to cities and $78 million to counties. The legislation would also allow municipalities, only if approved by local voters through referendum, to impose a surcharge on their sales tax rate that would be solely dedicated to public transit projects.
The governor also announced that his FY 2017-2018 budget proposal would use surplus one-time funds to finish repaying the Highway Fund by transferring $120 million from the General Fund.
Smith County would receive an additional $618,283.57 per year to use for roads if the proposal passes. That would be $168,197.85 in diesel tax and $450,085.72 in gas tax.
Carthage would receive a total of $25,053.61 with diesel and gas tax combined.
Gordonsville would receive a total of $13,178.68 with diesel and gas tax combined.
South Carthage would receive a total of $14,362.92 with diesel and gas tax combined.
Watch full proposal below, including Mayor Michael Nesbitt Speaking:
