Institute on Taxation and Economic Policy

Tennessee

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Gas Taxes Rise in Seven States, Including an Historic Increase in Oklahoma

June 26, 2018 • By Carl Davis

A rare sight is coming to Oklahoma. The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing, and Congress was debating whether to ban smoking on flights shorter than two hours. Fast forward 31 years, and Oklahoma is finally at it again. On Sunday, the state’s gas tax rate will rise by 3 cents and its diesel tax rate by 6 cents. Both taxes will now stand at 19 cents per gallon—still among the lowest in the country. But Oklahoma isn’t the only state where gas taxes will soon rise.

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Most States Have Raised Gas Taxes in Recent Years

May 22, 2018 • By Carl Davis

An updated version of this blog was published in April 2019. State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.

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‘IMPROVE’ Act Fails to Improve Tennessee’s Regressive Tax Code

February 13, 2017 • By Dylan Grundman O'Neill

Tennessee Gov. Bill Haslam’s proposal (dubbed the IMPROVE Act) to raise the state’s gas tax while cutting three other taxes would essentially be a tax cut for the state’s wealthiest residents and a tax increase for the lowest-income Tennesseans. While the gas tax is badly in need of an update to fund maintenance and investment […]

ITEP Work in Action  

The Sycamore Institute: Tennessee State Budget Primer

February 2, 2017 • By ITEP Staff

It is our pleasure to present to you the Sycamore Institute’s first Tennessee State Budget Primer. We hope this report – the information, the graphics, and the discussion – will demonstrate our commitment to putting reliable data and research in the hands of our state leaders, policymakers, and the general public. Below you will find […]

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Tennessee Hall Tax Repeal Would Overwhelmingly Benefit the Wealthy, Raise Tennesseans’ Federal Tax Bills by $85 Million

February 23, 2016 • By Dylan Grundman O'Neill

Read PDF of report. Tennessee lawmakers are giving serious consideration to repealing their state’s “Hall Tax” on investment income (so named for the state senator who sponsored the legislation creating the tax more than eighty years ago).  But the Hall Tax is an important revenue source for both state and local governments, and is a […]

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Low Tax for Whom?: Tennessee is a “Low Tax State” Overall, But Not for Families Living in Poverty

September 17, 2015 • By Meg Wiehe

Annual data from the U.S. Census Bureau appear to lend support to Tennessee's reputation as a "low tax state," ranking it 50th nationally in taxes collected as a share of personal income.1 But focusing on the state's overall tax revenues has led many observers to overlook the fact that different taxpayers experience Tennessee's tax system very differently. In particular, the poorest 20 percent of Tennessee residents pay significantly more of their income (10.9 percent) in state and local taxes than any other group in the state. For low-income families, Tennessee is far from being a low tax state.2 In fact,…

ITEP Work in Action  

Tennessee Comptroller of the Treasury: Tennessee Transportation Funding

January 20, 2015 • By ITEP Staff

This report is in response to a 2014 request from the Fiscal Review Committee of the Tennessee General Assembly. The purpose of this study is to provide an overview of Tennessee’s current financing system for highways and bridges, outline challenges to the existing system, and review alternative funding methods. The report is intended to provide […]

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Tennessee Hall Tax Repeal Would Overwhelmingly Benefit the Wealthy, Raise Tennesseans’ Federal Tax Bills by $60 Million

March 24, 2014 • By Carl Davis

A new analysis performed using the ITEP Microsimulation Tax Model shows that the vast majority of Tennesseans would see very little benefit from Hall Tax repeal. Nearly two-thirds (63 percent) of the tax cuts would flow to the wealthiest 5 percent of Tennessee taxpayers, while another quarter (23 percent) would actually end up in the federal government's coffers. Moreover, if localities respond to Hall Tax repeal by raising property taxes, some Tennesseans could actually face higher tax bills under this proposal.

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Tennessee is a “Low Tax State” Overall, But Not for Families Living in Poverty

September 19, 2013 • By Meg Wiehe

Read the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau appear to lend support to Tennessee’s reputation as a “low tax state,” ranking it 49th nationally in taxes collected as a share of personal income.1 But focusing on the state’s overall tax revenues has led many […]