Legislative Watch 
LEGISLATIVE
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9/12/05-Some Republican state lawmakers are urging Gov. Phil Bredesen to temporarily suspend the state’s per gallon tax on gasoline and diesel fuel to give consumers a break at the pump. The Tennessee tax on diesel is 17 cents per gallon and 21.4 cents per gallon for gasoline.
In their letter to Bredesen, the legislators wrote: “There are several reserve funds which can be used to make up for this temporary tax loss. Further, the cessation of gas tax collection will not terminate the functionality of any government entity.”
The status of IFTA requirements for miles driven in Tennessee was not addressed in the Republicans’ letter, so even if the tax is suspended at the pump, truckers could end up owing it at the end of the quarter when they file their International Fuel Tax Agreement paperwork and payments.
Republicans estimate a tax suspension for one month would cost the state about $51 million, The Tennessean reported. Most of that money goes for state and local roadwork.
Bredesen said he thinks it’s a bad idea to drop Tennessee’s per gallon tax on fuel and that price decreases are already being seen.
