Tennessee governor signs IMPROVE Act into law

(Photo: WKRN)

NASHVILLE, Tenn. (AP) – Gov. Bill Haslam has signed his wide-ranging proposal that increases Tennessee’s gas tax to fund roadwork and cuts other taxes.

On Wednesday, the Republican governor signed the bill that includes Tennessee’s first gas tax increase since 1989. The changes take effect July 1.

Both chambers passed the bill last week. In a final vote Monday, the House agreed to include disabled veterans property tax relief and sent the bill to Haslam’s desk.

The bill also cuts sales tax on groceries, corporate taxes on manufacturers and tax on earnings from stocks and bonds.

The gas and diesel tax increases are phased in over three years.

The bill aims to start addressing a $10 billion backlog in Tennessee road and bridge projects.