Tennessee, Missouri lawmakers pursue fuel tax relief

If one Tennessee state lawmaker gets his way, truck drivers and others fueling in the state will get some relief at the fuel pump.

Rep. Bruce Griffey, R-Paris, has filed a bill for consideration during the upcoming regular session to reduce the state’s fuel tax rates.

Tennessee’s current gas tax rate is 26 cents. The diesel rate is 27 cents.

Griffey’s bill would return the tax rates to where they were prior to a 2017 state law that raised the gas tax by 6 cents to 26 cents and the diesel rate increased by 10 cents to 27 cents.

Instead of relying on the additional fuel tax revenue to fund transportation and infrastructure projects, HB1650 would reroute funds from the state’s budget surplus to roads and bridges.

In fiscal year 2021, Tennessee collected $3.1 billion more in taxes that the legislature budgeted, Griffey reported.

“The state would continue to fund transportation and highway projects at the same financial level while at the same time giving tax relief to its citizens,” Griffey said in a news release. “We wouldn’t miss a beat with our infrastructure projects because Tennessee has the money.”

He adds that the state needs to look at reasonable ways to offer tax reform and mechanisms to return excess tax collections to taxpayers because “coffers are overflowing, and we are on a continued revenue growth trajectory.”

HB1650 awaits assignment to committee for the regular session that begins Jan. 11.

Missouri lawmakers offer similar repeal

In the Show-Me State, a legislative pursuit underway also would reverse course on a recent fuel tax increase.

Earlier this year, the Missouri General Assembly approved and Gov. Mike Parson signed into law a bill to raise the 17-cent fuel tax rate by 12.5 cents over five years.

Since Oct. 1, the state is collecting 19.5 cents per gallon on fuel purchases. The tax rate will climb to 29.5 cents by July 1, 2025.

Rep. Sara Walsh, R-Ashland, and Sen. Mike Moon, R-Ash Grove, are behind a bill to repeal the tax increase.

The main point of contention for the increase is whether legislators worked around the Hancock Amendment to the Missouri Constitution. The amendment mandates that any proposed tax rate increase above a certain amount must go before voters.

The bills, HB1594 and SB782, can be considered during the session that begins Jan. 5. LL

More Land Line coverage of news from Tennessee and Missouri.