Security was tight Friday as state lawmakers held a public meeting to discuss the governor’s proposed tax increase. Though several law enforcement agencies were on hand, the gathered constituents offered no shouts or signs of protests. Their views, however, did vary on increasing the tax.
More than a dozen uniformed State Troopers, Sheriff’s deputies and Smithville police officers lined the meeting room at the County Complex with the troopers lining an exit from the building after lawmakers concluded the meeting.
The Act, if approved, would cut the sales tax on groceries another half percent ($55 million) to 4.5 percent while it increases the road user fee or gas tax by seven cents for a gallon of gas and 12 cents for a gallon of diesel. The Governor’s plan would also increase car registration fees by $5 for the average passenger vehicle, which is expected to bring in $278 million in new dollars for Tennessee Department of Transportation projects. There would be $100 vehicle tax on electric vehicles and a three percent charge on rental cars.
State Senator Mae Beaver, State Representatives Mark Pody and Terri Lynn Weaver told the audience they believed there were other ways to fund the state’s transportation department without raising the gasoline tax, as proposed by Governor Bill Haslam. That proposal also calls for the tax to be tied to the Consumer Price Index in future years.
"The most egregious part of this bill to me is the indexing," said Beavers "which means it will be tied to the Consumer Price Index. Which means it could go up with a vote of the legislature."
Representative Weaver stated that four transportation funding bills would be heard on Wednesday, Feb. 22 with four additional bills to be heard the following Wednesday.
"Low taxes, broad base, record revenue works," Weaver said. "That’s what we’re seeing in the state.
"Since I’ve been on board, we have worked to decrease taxes and give you more money in your pocketbook. That’s what generates revenues. As long as we keep those taxes low and don’t raise those taxes, the formula will always give record revenues. The minute you start upping taxes it intercepts and it ruins that flow.
"Why I do not support the gas tax is I cannot come to my people in the district and say ‘we’re running two-million dollars in surplus – oh by the way, ante up, we’re going to tax you on the pump.’
"I think it would be unconscionable to ask people to ante up for a gas tax when we have a high surplus.
"There are numerous plans out there, but the one I like is one that would take .25 cents of the state sales tax and that only for transportation," she added.
Rep. Mar Pody said there would be numerous plans to consider in the coming weeks and that his goal was to provide a consistent source of revenue for the department so that local governments could count on future funding.
Many local Democrats attending the meeting made it clear they were in favor of the tax increase, while Republican members of the audience voiced the opposing view.
The crowd was almost evenly divided when lawmakers asked for a show of hands "for" and "against."
The lawmakers assured the audience they would consider their views as they prepare to vote on various pieces of legislation relating to the tax hike in the next few weeks.
