Tennessee House Bill HB2194

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/31/24

Caption

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

Impact

The impact of HB 2194 is expected to resonate through several state laws, particularly those pertaining to transportation funding and state revenue. By reducing the gasoline tax, the bill may lead to a decrease in funds allocated for maintenance and improvement of state infrastructure, which heavily relies on these tax revenues. This could affect road conditions and transportation services state-wide, raising concerns among policymakers about how to reconcile tax cuts with the need for robust infrastructure financing.

Summary

House Bill 2194 aims to amend the existing gasoline tax rate detailed in Tennessee Code Annotated, Title 67, Chapter 3. The bill proposes to reduce the gasoline tax from twenty-six cents (26¢) per gallon to twenty cents (20¢) per gallon, which represents a significant cut in the taxation on gasoline within the state. This reduction is designed to alleviate the financial burden on consumers who rely on gasoline for transportation, especially in light of rising fuel costs and economic concerns.

Sentiment

The general sentiment surrounding the bill is mixed. Supporters advocate for the tax cut as a necessary relief for consumers struggling with high costs of living, arguing that the savings can be redirected towards other essential needs. However, opponents express concern over the potential ramifications for transportation funding and infrastructure sustainability, fearing that such cuts could lead to deferred maintenance and increased long-term costs. This division reflects broader tensions regarding fiscal policy and public spending priorities in Tennessee.

Contention

Notable points of contention regarding HB 2194 include the potential trade-offs between immediate tax relief for consumers and the long-term implications for public infrastructure financing. Critics argue that while the reduction in gasoline tax could provide short-term financial relief, it undermines the state's ability to adequately fund essential services and maintain transportation networks. Proponents maintain that the economic benefits of lowered taxes will stimulate consumer spending and foster economic growth, countering the argument that the tax cut would jeopardize public welfare.