Gas tax hike not a popular subject, but may be necessary

Published 9:39 am Wednesday, January 25, 2017

Our View

The proposal to raise Tennessee’s levy on a gallon of gasoline is not going to win Gov. Bill Haslam many friends
But outside of an increase in the state gasoline tax, there are no other financing options to address Tennessee’s road maintenance and expansion needs.
“Hard stuff is hard to do,” the Governor said. “I recognize that this is not an easy thing to do. But I think people understand that we have to do something.”
The governor’s proposal — an eight-cent gasoline tax increase — would fund an ambitious road-building program that would carry through well after he leaves office in two years.
Haslam’s plan would generate about $278 million per year in new transportation funding, while at the same time cutting about $270 million in taxes for shoppers buying groceries, manufacturing companies investing in the state, and people earning income from stocks and bonds.
None of us like to pay more in taxes, whether it’s sales, property or gasoline taxes, but it bears emphasis that Tennessee’s tax on gasoline has not been increased in 28 years.
Further the Tennessee levy of 21.4 cents per gallon pales in comparison to the national state average of 30.29 cents per gallon. That’s in addition to the federal levy of 18.4 cents per gallon.
It’s also important to note that in this new era of electric and hybrid vehicles, a hike in the gas tax is only allowing the state to break even on the inflationary costs of building and maintaining roads. As fuel sources for the cars we drive shift away from gasoline, the state will need to devise new revenue sources for these infrastructure necessities.
In the meantime, a state tax on gasoline is all we have. And, more than once money has been borrowed from the transportation fund to supplement the general budget, a practice that must stop.
As stated above, Gov. Haslam is not going to win many friends by broaching this subject.
But the alternative is a state highway system that is poorly maintained and fails to meet the carrying capacity of the vehicles using them. One good example locally is that of West Elk Avenue, one of the city’s most congested thoroughfares, especially in the morning and afternoon when motorists are driving to and from work.
Along with the gasoline tax hike, Gov. Haslam proposes raising the tax on diesel by 12 cents to bring it into line with the gas tax. He also proposes adding a 3 percent charge on cars rented in Tennessee, increasing car registration fees by $5 for the average passenger vehicle, and charging electric vehicles $100 per year to drive on Tennessee roads and charging higher taxes for vehicles running on natural gas.
The governor also hopes to collect $18 million for road projects by bringing the state’s open alcohol container law into federal compliance. Most of that money is now earmarked for drunken-driving enforcement and prevention.
Any tax hike is painful. But this one appears necessary and should save motorists money in the long term in the form of fewer car repair bills.
Building and maintaining roads is our bill to pay, if we want a state that works as well as it should.
It has been too easy over the decades to put off necessary infrastructure investment, but there always comes a payday.
The tax increase will be a difficult pill to swallow for conservative Republicans in the state House and Senate. As you may know, Tennessee is a pay-as-you-go state when it comes to transportation projects like road construction or maintenance. This method means the state does not take on debt for future transportation projects. Well-maintained roadways are vital to economic growth and public safety, but recently, state officials have said that current funding sources are not enough to maintain Tennessee’s roads and bridges.
Despite all the understandable concerns about higher taxes, there are issues and times when government needs more revenue to ensure a brighter future for the state. Repairing roads and bridges is one of those issues and this is one of those times that a health discussion is needed by legislators and citizens.

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