By Scott Pearson

Staff Writer

Tennessee Governor Bill Haslam unveiled the first, and probably most controversial, part of his 2017 legislative agenda on Wednesday.

The plan increases the tax on gasoline by seven cents a gallon and on diesel fuel by 12 cents.

The added funds would be used to reduce the backlog of road and bridge projects in the state, generally quoted as being $6 billion.

Tennessee has had the same 21.4 cents per gallon tax rate on gasoline since 1989. The State Comptrollers Office calculates that, after 27 years of inflation and increased construction costs, that figure represents roughly 11 cents worth of buying power today.

The Governor’s plan projects an average cost of $4 per month for the average Tennessean.

One aspect of Haslam’s plan that observers predict will bring additional criticism is the plan to tie the tax rate to the Consumer Price Index, keeping the rate stable with inflation but adjusting itself, presumably, without legislative action.

An annual road fee would be placed on electric vehicles and a three percent charge on rental cars would be assessed as well.

Car registration fees would also increase by $5.

The proposal also changes Tennessee’s open container law so that open alcoholic beverages would not be allowed at all, not only for the driver. Closing this loophole would give the state access to $18 million of federal highway money that they currently cannot receive because of the law.

Overall the plan is projected to add $278 million into the state’s transportation budget.

With that additional money, Haslam proposes 962 projects across the state as well as a 40 percent increase in transportation funds to cities and counties.

The replacement of four bridges in Marshall County is on the list of proposed projects: Nashville Highway over Rock Creek, High Street over Cane Creek, East Hill Avenue over the CSX rail lines, and Hatchett Road.

Estimated total of the four bridge replacements is $7 million.

Projections on the increase for municipalities in the county of the combined increase on gas and diesel add roughly $16,000 to Chapel Hill, $13,000 to Cornersville, and $120,000 to Lewisburg.

Overall, the increase is projected to add $680,000 to Marshall County for road and bridge work annually.

The act also decreases some taxes as well. It is designed to be “revenue neutral,” not bringing in more money to the state, just changing where it goes. There are $270 million in cuts included compared to the $278 million in increases.

The plan would cut the sales tax on food from 5 percent to 4.5 percent, estimated to save consumers $55 million.

The franchise and excise tax on manufacturing businesses will be adjusted, saving business $113 million, and the Hall income tax will be cut 1.5 percent.

The Hall income tax was repealed in the last legislative session, scheduled to be phased out by 2022.

“Together these proposed tax cuts and investments will move the state forward and position the next Tennessee for continued growth, prosperity, and opportunity for our children and grandchildren,” Haslam said of the proposal.