RESOLUTION NO. RS2017-553

A resolution expressing the Metropolitan Council’s support for the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy or IMPROVE ACT introduced by Governor Bill Haslam to the Tennessee General Assembly, and requesting that the Davidson County Delegation support state legislation which implements this act.

WHEREAS, a significant backlog of delayed transportation projects has accumulated in Tennessee at a volume estimated to be in excess of $10 billion dollars; and

WHEREAS, current revenue sources for funding transportation infrastructure in Tennessee –- a state tax on gasoline and diesel sales –- is assessed at levels insufficient to provide the new transportation infrastructure construction or design and ranks in the bottom 10 for state and federal gas and diesel taxes throughout the United States; and

WHEREAS, a modern and maintained system of highway and roads is crucial to the economy of Davidson County and the state of Tennessee, and it ensures the continuing ability to expand employment opportunities, attract tourists and visitors, and serve the ever-expanding needs of Tennessee residents and citizens; and

WHEREAS, the Tennessee General Assembly will soon be presented with Governor Bill Haslam’s proposal for a dedicated funding stream for Tennessee’s transportation needs, crafted over several years, labeled the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy or IMPROVE ACT; and

WHEREAS, the IMPROVE Act proposes sales tax increase of 7-cents per gallon of gasoline and 12-cents per gallon of diesel, indexed to the Consumer Price Index. These taxes have not increased since 1989 and have not kept pace with the evolution of transportation whereby vehicle efficiency has improved dramatically, construction costs have continued to increase, and yet greater numbers of travelers exert greater demands on highways and roads. Additionally, an increase in fuel taxes establishes a closer nexus of generating transportation project funds from those who most heavily rely upon Tennessee’s transportation infrastructure; and

WHEREAS, to balance tax increase concerns, the IMPROVE Act would cut sales taxes on food and groceries, reduce excise and franchise taxes, and establish a schedule accelerating the reduction of the Hall Income Tax on dividend income; and

WHEREAS, the IMPROVE Act would further allow counties and local governments to conduct voter referendums to increase local option sales taxes to fund local transit projects, thereby enabling citizens of Davidson County to consider these funding options for transportation projects; and

WHEREAS, it is reasonable and proper that this Metropolitan Council urge support of the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy or IMPROVE ACT and other legislation which implements a modernized, dedicated and strategic funding stream for Tennessee’s highway and road system.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as supporting the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy or IMPROVE ACT, to be introduced before the Tennessee General Assembly.

Section 2. The Metropolitan County Council further requests that the Davidson County Delegation to the Tennessee General Assembly support the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy or IMPROVE ACT, and any related legislation which further funds transportation infrastructure in Tennessee and Davidson County.

Section 3. The Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 4. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Jim Shulman, Burkley Allen

LEGISLATIVE HISTORY

Referred to: Rules, Confirmations, and Public Elections Committee
Introduced: February 7, 2017
Adopted: February 7, 2017
Approved: February 8, 2017
By: Mayor's signature

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