Tennessee Lawmaker Requests One-Month Suspension of State Gas Tax
What happened
Tom Hatcher, a Tennessee lawmaker, sent a letter to Governor Bill Lee requesting a one-month suspension of Tennessee's 27.4-cent gas tax, starting November 1. Hatcher stated that the temporary measure was warranted by extraordinary circumstances facing Tennessee motorists. The requested cut would align with the governor's action allowing farmers and loggers to use tax-exempt diesel during the harvest season.
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Why it matters
The state of Tennessee requires $3.6 billion annually to maintain and improve roads, while facing a backlog of $58 billion to $87 billion in construction projects. The gas tax supports these transportation priorities, and the request involves a temporary cut to a core state revenue stream.
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Who's involved
- Tom HatcherLawmaker who requested the tax suspension from Lee.
- LeeGovernor who received the request for the tax suspension.
- TennesseeState whose gas tax and infrastructure funding are the subject of the request.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- American Petroleum InstituteSpeculative
Industry members might see lower operational costs due to the temporary tax cut.
- Energy TransferSpeculative
Energy Transfer could see increased demand and volume for energy products if the tax cut takes effect.
- Tennessee Department of RevenueSpeculative
The Tennessee Department of Revenue may experience a temporary reduction in tax collection operations.
- Tennessee Department of TransportationSpeculative
The Tennessee Department of Transportation could face reduced primary funding for infrastructure and road maintenance.