Democratic lawmakers are calling on Tennessee Gov. Bill Lee to put a moratorium on the collection of gas and diesel taxes amid Russia’s invasion of Ukraine and the rising cost of fuel.

Calling it a “temporary sacrifice,” Nashville representatives John Ray Clemmons and Bo Mitchell have joined efforts to ask the Republican governor to place a 90-day moratorium to benefit working families. Clemmons said Tuesday the moratorium can be issued in three ways. Gov. Lee can declare a state of emergency and issue an executive order, the state can use the Budget Implementation Bill or file a standalone bill under Title 67.

The efforts come hours after President Joe Biden announced to ban Russian oil imports, toughening the toll on Russia’s economy in retaliation for its invasion of Ukraine. Democratic leaders said while they support our nation’s effort and support neighbors abroad, Tennessee must provide some relief to working families.

Each year, Tennessee’s gas tax brings in roughly $9 million into state coffers. Rep. Mitchell says the mortarium would put about $224 million back into the pockets of taxpayers recovering from the pandemic.

“We have the money,” Clemmons told reporters Tuesday. “Our state has over-collected $1.8 billion in sales tax since August in this fiscal year. We’re sitting on a rainy day fund of $1.55 billion.”

The average price for a gallon of gasoline in the US hit a record $4.17 Tuesday, according to data from AAA, shattering the old 2008 record by 7 cents.

Gasoline Tax – Of the 26 cent tax per gallon, municipalities receive 99 percent (one percent is retained by the state for administration) of 14.38 percent of the first 11 cents (minus 0.1074 percent designated for boating safety); 33.33 percent of an additional two cents from increases in 1985 and 1986 (minus 0.1074 percent designated for boating safety); and 33.33 percent of an additional one cent increase in 1989. Public Chapter 181, known as the “IMPROVE Act” was passed in April of 2017.
Diesel Tax –  Beginning with fiscal year 2020-21 the tax is be 27 cents. Of the original 17 cents tax per gallon, municipalities receive 12.38 percent of 12 cents.
Liquified Gas – Of the 14 cents tax per gallon, municipalities receive 14.14 percent of the first 11 cents and 99 percent of 33.33 percent of an additional one-cent increase in 1986.