KNOXVILLE, Tenn. (Story courtesy of WVLT) – Gas prices are climbing across Tennessee and the nation, and while some lawmakers have floated the idea of cutting the state’s gas tax to give drivers relief, others are warning that move could bring road construction and repairs to a standstill.
The national average for a gallon of regular unleaded gas has surpassed $4.00 — the highest since 2022 — according to AAA. In Tennessee, drivers are paying an average of $3.72 per gallon. In Knox County, the average sits at $3.73, while Johnson County is seeing the highest prices in East Tennessee at $3.85 per gallon.
With prices on the rise, the gas tax has become a flashpoint at the state capitol. But lawmakers on both sides of the aisle say cutting it is not the answer.
State Sen. Richard Briggs, R-Knoxville, who serves on the Senate Transportation Committee, said the structure of Tennessee’s road funding makes a gas tax cut nearly impossible to absorb.
“If we start cutting the gas tax or we do cut the gas tax, that means all road repairs will halt. It means all construction will halt,” Briggs said.
Briggs said the gas tax is the sole source of revenue for the Tennessee Department of Transportation, making any reduction a direct threat to infrastructure projects statewide.
“I just don’t see how we can cut the gas tax when that is the sole source of revenue for TDOT and then fix our roads or continue these construction projects or do anything, quite frankly, to alleviate the traffic problems,” he said. “It’s a really tough issue that I don’t have all the answers to.”
State Rep. Sam McKenzie, D-Knoxville, echoed that concern, calling a gas tax cut a short-term fix that would create long-term problems.
“I think the lowering or the getting rid of the gas tax was just trying to give some immediate relief. I don’t like that as a long-term solution,” McKenzie said. “We have great interstates going through our state and through our core cities. They need improvement. We’re way behind on our infrastructure.”
Other Relief Options on the Table
McKenzie said lawmakers are exploring other ways to ease the financial burden on Tennessee families — including grocery tax relief and a potential sales tax holiday.
“We have several grocery tax relief right now. We’re really hoping that that will resonate. It’s not a lot for the individual pocket, but it does help,” McKenzie said.
He also pointed to a possible temporary sales tax break as prices continue to rise across the board.
“What we’re hoping for is to maybe give a sales tax break for a month until this thing eases — because right now it’s costing 20 and 30% more for a lot of things,” McKenzie said.
McKenzie also called for a broader conversation about tax fairness in Tennessee, arguing the state’s reliance on sales tax places a disproportionate burden on lower-income residents.
“We need to get ourselves right side up, stop being such a regressive form of tax where it’s all coming through sales tax,” he said. “Millionaires paying the same amount of tax to the state as someone making [less] — that’s just not right.”
McKenzie said he has not heard of any relief proposals coming from the Republican majority.
“I don’t think they care right now at this point,” he said.
Budget Pressures Complicate the Picture
Both lawmakers acknowledged that Tennessee’s budget is tighter than expected this session, limiting the state’s options. McKenzie said the budget shortfall is partly the result of tax breaks given to large corporations.
“This budget’s going to be about $7 billion lighter than last year’s budget,” McKenzie said. “Because we’re giving billionaires additional millions of dollars worth of tax breaks.”
Briggs said the state faces difficult choices but stopped short of offering a specific solution to rising gas prices.
“We need to come here and be fiscally responsible,” he said.
The legislative session is expected to wrap up within the coming weeks. No vote on the gas tax has been scheduled.
