IMPROVE Act In Effect As of July 1

Tennesseans to Save More at the

Store Than They Pay at the Pump

On Saturday, July 1, Gov. Haslam’s IMPROVE Act went into effect, addressing a $10.5 billion backlog in repairs and updates by prioritizing 962 projects across all of Tennessee’s 95 counties.

The IMPROVE Act creates a long-term, dedicated funding source to fix Tennessee’s outdated transportation infrastructure by making a modest increase to the user fees for its roads and bridges while containing the largest tax cut in the history of the state.

A 4-cent increase on gasoline will be offset by a series of tax cuts, including:

*   Grocery tax cut savings

*   Manufacturers business tax reduction

*  Property tax relief for eligible elderly and disabled homeowners and service-disabled veterans

  *  Hall income tax cuts

“The IMPROVE Act’s slight increase to the user fees for our roads is offset by the law containing a 20 percent tax cut on food. As a result, people will save more at the grocery store than they pay at the pump,” said Susie Alcorn, executive director of the Tennessee Infrastructure Alliance. “Gov. Haslam’s IMPROVE Act is the fiscally responsible and balanced way to address our transportation infrastructure needs.”

The IMPROVE Act also includes a local option for the twelve most populous counties to hold their own referendums for tax increases to fund local transit needs.