Governor Bill Haslam's proposal to boost transportation funding has now been placed on equal footing in the Tennessee House and Senate.
The measure that would include the state's first gas tax hike since 1989 was advanced by the House Local Government Committee on Tuesday. That meant the measure was now before the finance panels of both chambers -- the final standing committees before full floor votes.
Under the latest version of the bill, the state would increase the tax on each gallon of gas by six cents over three years, and diesel by ten cents. The measure would also cut the sales tax on groceries, corporate taxes paid by large manufacturers, and the tax on earnings from stocks and bonds.
Haslam argued the proposal has represented a net tax cut for Tennesseans.