NASHVILLE, Tenn. (AP) – The Latest on Gov. Bill Haslam’s road funding proposal (all times local):
The Tennessee Senate has approved Gov. Bill Haslam’s road funding proposal, which includes the state’s first gas tax increase since 1989.
Senators voted 25-6 on Wednesday for the Republican governor’s roads package, which also cuts other taxes. It heads back to the House to resolve a difference over property tax relief for veterans.
The Senate wants property tax relief for disabled veterans to increase to up to $175,000 in property value.
Republican Senate Majority Leader Mark Norris of Collierville deemed the proposal an overall tax break.
The bill cuts the sales tax on groceries, corporate taxes on manufacturers and the tax on earnings from stocks and bonds.
Republican Gov. Bill Haslam’s road funding proposal that would also include Tennessee’s first gas tax hike since 1989 has passed the Tennessee House.
The chamber approved the bill on a 60-37 vote on Wednesday after a marathon debate and dozens of failed amendments. The bill now heads to the Senate where the measure has met with little resistance so far.
Efforts supported by House leadership to strip the gas tax out of the bill fell well short in a floor vote. That proposal would have instead funded new road and bridge projects by redirecting revenues collected from the sales tax on new and used vehicle purchases.
The bill also includes a cut in the sales tax on groceries, corporate taxes on manufacturers and the tax on earnings from stocks and bonds.
An effort to strip a gas tax hike out of Gov. Bill Haslam’s road funding proposal has failed in the Tennessee House.
The chamber voted 58-38 on Wednesday against the proposal by Republican Rep. David Hawk of Greeneville to instead pay for the road and bridge projects with taxes collected in the sale of new and used vehicles.
The chamber earlier voted 61-35 in favor of the governor’s original proposal that would also cut the sales tax on groceries, corporate taxes paid by manufacturers and the tax on earnings from stocks and bonds.
A final vote on the bill was expected later in the floor session.
Republican Gov. Bill Haslam’s road and bridge funding bill has earned a strong majority of votes in a preliminary vote in the Tennessee House.
The chamber voted 61-35 to approve the governor’s proposal to pay for new projects in large part through the state’s first gas tax hike since 1989, while also cutting other taxes.
A final vote on the bill wasn’t expected until later in Wednesday’s floor session, and opponents hoped to amend the bill to strip out the gas tax and instead dedicate sales tax revenues from auto sales to highway funding.
Haslam says his approach is fairest because up to half of fuel taxes are paid for by trucking companies and out-of-state drivers. Sales taxes on vehicles are only paid on cars and trucks registered in Tennessee.
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