(The Center Square) – Tennessee House Democrats are calling for a gas tax holiday amid rising fuel prices.
Gov. Bill Lee’s budget amendment, released Tuesday, did not include a break on the tax, which adds about 26 cents to the price of gas. The money from the tax is used to fund transportation projects.
“We’d much rather see our state provide tax relief for the benefit of every family and business across the state than spend a billion dollars on an uncapped welfare program like vouchers that benefits a select few,” said Rep. John Ray Clemmons, Democratic Caucus Chairman. “Farmers, business owners, workers and families of every stripe in every community would benefit from us getting our priorities straight up here.”
The Georgia Legislature passed a gas tax, and Gov. Brian Kemp signed it on Friday, immediately bringing down gas prices in the Peach State. Georgia’s gas tax funds transportation.
The Center Square was unsuccessful prior to publication getting a comment from Lee.
The budget adjustments presented to the Senate Finance Ways and Means Committee on Tuesday by Jim Bryson, commissioner of finance and administration, include $92.7 million in capital and infrastructure projects. The state would use $40 million to reconstruct a Montgomery County bridge near the Korea Zinc project announced in December deemed not usable by the federal government, Bryson said. The company is building $6.6 billion in new production facilities in Clarksville and Gordonsville.
More than $26 million will be used to rebuild the David Crockett Birthplace State Park in Limestone, which was damaged by Hurricane Helene.
“We had about $27 million in federal funds for that park,” Bryson said. “We have since discovered that those funds are not available.”
The budget adjustment includes $1.25 million in grants for houses of worship.
“This was a program we started several years ago and we’ve burned all the money, we’ve given out all the rants so we want to put some more into that,” Bryson said. “There’s been some safety issues and so we wanted to respond to that.”
The Administration Budget Amendment Overview shows that the state’s rainy day fund will increase to $2,205,600,000 at the end of fiscal year 2027, up from $2,185,600,000 at the end of fiscal year 2026.
The state is in a slow-growth environment, Bryson said.
“The odds of a recession are low, which is good but the odds of fast growth are also low,” he said.
