Tennessee Gas Tax to Increase One Cent July 1
Tennessee’s gas tax rose a penny July 1 to 26.4 cents per gallon as part of the IMPROVE Act, proposed by Governor Bill Haslam and passed last year.
The increase was the second of three hikes to be implemented over three years. Last July 1 saw a four cent increase, and next July 1 will bring another one cent rise to 27.4 cents per gallon.
The IMPROVE Act, or Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy Act, is helping to fund a $10 billion backlog in state road projects, estimated prior to passage to provide $250 million to the state Department of Transportation, $70 million to counties and $35 million to cities for transportation needs.
The tax on diesel fuel increased three cents, part of a staggered increase totaling ten cents.