Gas Tax Increase Is Actually A Tax Reduction???????

At a recent Giles County Republican Party Meeting, 11 July 2017 at the Staar Theater, Representative Barry Doss addressed the group on the subject of his having worked for and voted for the governor's "Improve Act".  As many of you know, that was the very controversial legislation that increased the fuel taxes and vehicle registration. The legislation also slightly reduced the tax on food, the Hall Income tax and some business taxes. Rep. Doss made a number of assertions during this meeting, among them was that no fuel tax money goes into the state's General Fund, is spent on Mass Transit or anything but "roads and bridges".

There were other parts to the discussion but I want to focus on the main part of Rep. Doss's claim, that the "taxes on fuel are not spent on anything but roads and bridges, not one cent".

These are copies of the actual state budget for 2015-2016 and 2016-2017. As you can easily see these actual budgets do not fit the narrative presented by you last evening.  Over $189,000,000 dollars were diverted from the "Highway User Fee" funds to the “General Fund”,  “Education” and to “Debt Services”. Notice also that the gasoline tax is not the only state tax on fuels. While I don’t expect an apology,  I do want you to know that, your facts were somewhat misleading and inaccurate.

Sources of Highway User Fee Taxes

  State of Tennessee Budget, FY 2015-2016

         Actual

  

Highway User Fee Tax                                   $                                 %

Gasoline Tax.                                         659,915,000                     55.3%

Motor Fuel Tax                                     172,336,300                     14.4%

Gasoline Inspection Tax.                        67,380,500                       5.6%

Motor Vehicle Registration Tax          271,197,800                     22.7%

Motor Vehicle Title Fees                        22,781,500.                     1.9%

Total Highway User Fee Taxes          1,193,611,100.                 100.0%

Source: Budget: State of Tennessee, FY 2017-2018    Page A-65

Table 2 below breaks down how those “highway user fee taxes were spent by the state of Tennessee in FY 2015-2016.

                                            

Table 2

 Uses of Collected Highway User Fee Taxes

 State of Tennessee Budget, FY 2015-2016

                    Actual

Uses of Highway User Fee Taxes.                           $                             %

Diverted to General Fund                               98,002,700                      8.2%

Diverted to Education Fund.                                 69,300                      0.0%

Diverted to Debt Service Fund                       91,500,000                      7.7%

Transportation’ at Cities & Counties           309,187,700                    25.9%

Highway Fund                                                694,851,400                    58.2%

Total Uses of Highway User Fee Taxes      1,193,611,100.                 100.0%

Source: Budget: State of Tennessee, FY 2017-2018    Page A-65

TDOT WORK PROGRAM FY 2016-17 

DESCRIPTION                      FEDERAL          STATE               OTHER                  TOTAL 

Administration                            0                      $ 80,149,900              0                   $ 80,149,900 

   

HQ Operations                            0                        31,706,800.              0                     31,706,800 

Field Operations                         0                         63,090,200.              0                     63,090,200 

Garage and Fleet Operations.     0                         36,112,500        4,600,000              40,712,500 

Capital Improvements                0                                         0.                    0.                              0

Highway Maintenance               0                    $ 306,323,900                     0         $ 306,323,900

Betterments                                 0                          $ 800,000        $ 100,000                $ 900,000 

State Aid                                    0                            30,622,000         625,000              31,247,000 

State Industrial Access              0                            30,000,000          200,000              30,200,000

 Local Interstate Connectors     0                              2,000,000.      2,000,000               4,000,000 

Subtotal                                      0                         $ 63,422,000    $ 2,925,000          $ 66,347,000 

Mass Transit.                          $ 92,188,400.         $ 49,735,000           $ 0               $ 141,923,400 

 Planning and Research.            17,300,000.              6,571,000             0                    23,871,000 

Interstate                                  164,187,000             18,200,000.            0                  182,387,000 

Forest                                              700,000                  200,000             0                         900,000 

Highway Construction             711,835,000           150,844,700       21,500,000          884,179,700 

Air, Water, and Rail                   13,500,000.            38,200,000         2,500,000.         54,200,000 

Subtotal                                $ 999,710,400         $ 263,750,700      $ 24,000,000   1,287,461,100 

TOTAL D.O.T.                     $ 999,710,400         $ 844,556,000      $ 31,525,000.  1,875,791,400 

Highway User Taxes.                $ 670,000,000 

Miscellaneous Revenues                19,656,000

Fund Balance & Reserves              29,000,000 

Bond Authorization                        87,700,000 

Transportation Equity Fund           38,200,000 

TOTAL STATE FUNDING       $ 844,556,000