NASHVILLE, Tenn. (WKRN) – Tennessee Governor Bill Haslam signed the IMPROVE Act into law Wednesday afternoon.
The law that brings the state of Tennessee’s first gas tax hike since the 1980s goes into effect July 1 and brings about a four cent per gallon increase to the current 20 cents tax. The gas tax will rise to 25 cents per gallon in 2018 and 26 cents in 2019.
Previous story: Tennessee House, Senate pass Gov. Haslam’s gas tax bill
According to the governor’s office, the legislation cuts nearly $300 million in taxes next year and more than $500 million annually at its full implementation.
The tax cuts include a 20 percent decrease in the sales tax on groceries that equals $125 million and a $113 million reduction in business taxes on manufacturers.
More online: Read the full bill