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Some Tennessee Leaders want to Pause State Gas Tax

As gas prices spike across Tennessee, some Democrats have called for a gas and diesel tax holiday to ease the pain at the pump but getting it passed will require cooperation from the Republican supermajority, which ultimately controls the budget.

According to AAA, the average price of a gallon of gas in the Volunteer State has increased $1.09 over the last month, mainly due to the war in Iran.

Democrats’ proposal would temporarily cut Tennessee’s current 26-cent-per-gallon tax on gas and 27-cent-per-gallon tax on diesel.

Democrats are asking the Republican supermajority to refuse to pass the bill that would double the number of school vouchers available in Tennessee, which they say would fund a two-month-long gas tax holiday statewide, saving the average family around $5 to $8 every time they fill their tanks.

However, it doesn’t appear that House Republican leadership is on board. House Transportation Chairman Dan Howell (R-Cleveland) wrote that not only is a gas tax holiday unenforceable, but it likely wouldn’t help consumers. Gas station owners set their own prices so there’s no guarantee any savings would be passed on. Even if it could be enforced, which it cannot, it would come at a steep cost by draining critical funding for roads. In the end, it’s a short-sighted proposal designed purely for political theatre.

The General Assembly will draft a legislative amendment to Gov. Bill Lee’s proposed budget, which will include their spending priorities, which sometimes don’t align with the governor’s. Lawmakers generally pass a final budget around April.