Haslam’s gas tax plan closer to approval with key committee win
Gov. Bill Haslam’s gas tax proposal inched closer to the finish line on Wednesday after another key vote, ensuring his signature piece of legislation for the year will be heard in both the Senate and House floors, as early as next week.
On Wednesday, the Senate Finance, Ways and Means Committee voted 10-1 to send the governor’s proposal to the upper chamber for a vote.
The committee’s passage could set up a dramatic finish for the legislation, with the Senate heavily leaning toward the Haslam plan while the House still considers alternatives.
Sen. Joey Hensley, R-Hohenwald, was the lone senator on the 11-member committee to vote against the legislation. Hensley said he preferred using the state’s surplus money to pay for transportation needs.
Haslam’s proposal seeks to raise the tax on gasoline and diesel by 6 cents and 10 cents, respectively, and calls for various cuts to the state’s sales tax on groceries, as well as the franchise and excise tax. The Senate version of the bill also features property tax relief for eligible veterans and the elderly. The House recently removed the property tax relief portion from its version of the measure.
If both chambers approve the measure and should any differences remain between the two versions, lawmakers will be forced to settle their differences in what will be a closelywatched negotiation process.
Senate Majority Leader Mark Norris, R-Collierville, amended the bill on Wednesday in a way that he
said provides additional clarity on the local option provision included in the measure, while also dubbing the legislation the “Tax Cut Act of 2017.”
The local option allows some local governments to hold referendums where voters will be asked about the possibility of raising additional revenue through taxes to help fund transportation needs, including mass transit.
At one point during the committee’s discussion, Norris waived a $20 bill to signify the amount of money he said the average family in Tennessee would save if the legislation is enacted.
“We’re on such a roll,” Norris said. “If you don’t do this and you raid the general fund instead, forget it.”
The Senate finance committee’s approval of the bill was hardly a surprise. The chamber’s leadership has expected the proposal to receive a vote on the floor.
But Senators delayed action on the measure in recent weeks in favor of waiting until the House moves forward.
Despite a recent effort to amend the gas tax bill, the House finance committee approved the legislation Tuesday, sending it to that chamber’s floor for a full vote.
The governor introduced his proposal in January and this week’s action is the culmination of months of discussion, debate and procedural maneuvers.
The fact that the legislation will reach the floors of both chambers is significant for Haslam. He has spent months selling the need for addressing the state’s road project backlog while also encouraging outside groups to reach out to lawmakers. The forthcoming vote on the gas tax is also noteworthy, given that Haslam suffered a significant blow in 2015 after lawmakers rejected his health care expansion proposal during a special session, with the bill failing to reach the floor of both houses.
Beyond the minor differences in the House and Senate versions of the legislation, the two chambers differ in another way: so far there has been no public discussion of advancing an alternate plan to the governor’s bill in the Senate. In the House, leadership, including House Speaker Beth Harwell, House Majority Leader Glen Casada and House Republican Caucus Chairman Ryan Williams, have all expressed a desire for passing a plan that does not feature an increase in the gas tax.
The trio of House Republicans have worked with Rep. David Hawk, R-Greeneville, to come up with a proposal that uses general fund revenues instead of a gas tax increase to pay for the state’s $10 billion backlog in road projects. Although the alternate plan failed to gain enough support in the House finance committee, Hawk and leadership have vowed for taking it up when it appears on the chamber’s floor.
Haslam and Senate leadership have criticized any plans that mostly rely on using the state’s general fund, citing concerns about any future economic downturns.
Reach Joel Ebert at jebert@tennessean.com or 615772-1681 and on Twitter @joelebert29.