Tennessee Senate Bill SB2235

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 3, relative to the gasoline tax.

Impact

By decreasing the gasoline tax, SB2235 aims to provide immediate financial relief to consumers amid rising fuel prices. However, this change may have broader implications for transportation funding in the state, as gasoline tax revenues often help support infrastructure projects and public transportation expenses. Opponents of the bill may argue that such a reduction could hinder the state's ability to maintain and improve its roads and bridges in the long term, affecting overall transportation safety and efficiency.

Summary

Senate Bill 2235 aims to amend Tennessee Code Annotated, specifically Title 67, Chapter 3, regarding the gasoline tax. The bill proposes to reduce the current gasoline tax rate from twenty-six cents (26¢) per gallon to twenty cents (20¢) per gallon. This reduction is significant and is expected to have a direct impact on the state's revenue generated from gasoline, which is used for transportation and infrastructure funding. The bill outlines that this change shall take effect on July 1, 2024, indicating a planned phase-in period for the reduced tax rate.

Conclusion

In summary, SB2235 presents an important discussion on fiscal policy in Tennessee, focusing on how tax reductions can influence both consumer behavior and state-level funding mechanisms. As the bill moves through the legislative process, its proponents and opponents will continue to debate its merits and the potential consequences of changing the gasoline tax rate.

Contention

The primary points of contention around SB2235 likely center on the balance between providing relief to citizens and ensuring adequate funding for essential state services like transportation infrastructure. Advocates for the bill argue that the tax cut is necessary in light of economic pressures on families, while critics caution that reduced funding could lead to deteriorating infrastructure and increased costs in other areas due to deferred maintenance or repairs. Additionally, some lawmakers may express concerns about potential long-term impacts on the state's budget and financial planning.