The Tennessee Senate has approved Governor Bill Haslam's road funding proposal. The plan includes the state's first gas tax increase since 1989.
Senators voted 25-6 on Wednesday for the roads package, which also cuts other taxes. It heads back to the House to resolve a difference over property tax relief for veterans.
Earlier:
Tennessee Governor Bill Haslam's road funding proposal that would also include the state’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 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.
