July 1st Marks First Increase in Higher Gas Tax Across Tennessee

Plenty of new laws will take effect in Tennessee on July 1, but the impact you’re likely to see most directly is at the pump.

Gas taxes are going up through the IMPROVE Act, Gov. Bill Haslam’s plan to work on a multi-billion dollar backlog of road projects.

The tax on a gallon of gas is going up by 4 cents on July 1, and then 1 cent each of the following two years, adding up to 6 cents total.

The tax on diesel fuel is going up by a total of 10 cents over the next three years.

There’s also a $5 increase in the cost to register your car.

The gas tax increases are offset by several other tax cuts, the most notable of which is on groceries. The tax will drop from 5 percent to 4 percent.

Courtesy of WKRN news 2