Gas tax raises more funds than expected in Tennessee

Tennessee has collected $20 million more than expected from a higher tax on gasoline and diesel fuel put in place in 2017.

At the same time, construction projects funded through the IMPROVE Act will be more expensive and take longer to complete than first projected.

Officials from the Tennessee Department of Transportation informed Gov. Bill Lee earlier this month about the developments with the IMPROVE Act — pushed by former Gov. Bill Haslam and approved by the legislature in an effort to fund the state’s then-$10 billion backlog in road projects.

The legislation increased taxes on gasoline and diesel fuel, as well as vehicle registrations, while reducing the tax on food.