Gas and Diesel Taxes Went UP July 1, 2018

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The start of July marked another increase in the gas and diesel tax for Tennessee.

In July of 2017, the regular unleaded gas tax started at 20-cents per gallon and in July of 2018, it went to 25-cents per gallon. In 2019, it will go up to 26-cents per gallon.

As for the diesel tax, it started at 17-cents per gallon and by July 1, 2019, it will be up to 27-cents per gallon.

Rutherford County Mayor Ernest Burgess talked about the miles and miles of roads that county government are responsible for...



The Rutherford County highway department receives funding from state fuel tax along with portions of the wheel tax, and the mineral severance tax. With the mineral severance tax, Rutherford County receives 15-cents per ton off of mined limestone or any other material outlined under the original resolution.

The only property tax the highway department receives is to do off road right-of-way, county approved, drainage problems.

What is the Mineral Severance Tax?

This is a local option tax wherein a county legislative body by resolution adopted by a two-thirds majority vote may levy a tax on all sand, gravel, sandstone, chert and limestone severed from the ground within the county. T.C.A. §§ 67-7-201, 67-7-212. The county legislative body sets the rate, but the rate cannot exceed 15 cents per ton. T.C.A. § 67-7-203. A tax authorized under this Section may be repealed by a resolution passed by a two-thirds majority of the county legislative body. T.C.A. § 67-7-201.

Distribution. The Tennessee Department of Revenue collects this tax. T.C.A. § 67-7-204. All revenues collected, less administrative expenses, are remitted to the county trustee quarterly and become a part of the county road fund. T.C.A. § 67-7-207.

As shown in Mineral Severance Tax Rates and Distribution FY 2017, 68 counties impose county mineral severance taxes. Of those 68, 58 counties allocate the proceeds to the county highway fund, eight counties allocate the proceeds to the county general fund with one designating the funds for roads from the general fund, one county allocates the proceeds to education and one to debt service. Sixty-three counties impose the maximum rate of $0.15; one county is at $.14; three counties are at $0.10; and one county is at $0.05.

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diesel, gas, Improve Act, roads, Rutherford County, tax, Tennessee
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