FUEL TAX HIKE MEANS ADDED ROAD FUNDS
Added Money For County, Three Cities, Projects Listed
With the approval of Governor Bill Haslam’s “Improve Act”, the county will receive hundreds of thousands of additional tax dollars for roads once the legislation is fully implemented.
While the governor asked for a seven cent increase in the state gasoline tax, legislators agreed on a six cent increase.
The governor asked for a 12 cent increase in diesel fuel and a 10 cent increase was approved by the General Assembly.
The increase in gasoline and diesel tax will be implemented over a three year period beginning July 1.
The state’s gasoline tax will increase four cents on July 1.
A one cent increase will take place in July of 2018 and 2019 for a total of six cents.
The tax on diesel fuel will increase by 10 cents during the same period.
Beginning in July, there will be a four cent increase for 2017, followed by three cent increases in July of 2018 and 2019 for a total of 10 cents.
During 2017-2018 fiscal year, the four cent increase in gasoline and diesel fuel tax is expected to result in $334,650 additional funds annually for the county.
After full implementation (2019-2020 fiscal year), the added tax is expected to result in $561,174 for the county.
Local cities will also see added funding from the state, but significantly less.
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