The increase in registration fees is a stealth mass transit tax for TDOT. There is a legal limitation on the percentage of highway funds that can be spent on mass transit. The legislature has gotten around that limitation once in 1989 and is trying to go around it again by dedicating all of the next 2 cent per gallon gas tax increase to local aid funds.

The old limitation on transit was forced to be below 22.22% of all local gas taxes by Title 54-4-20-4 (c). If 28.6% of all taxes go into local funds and only 22.22% of that can be transit related, the percentage of total money that can be spent on transit is near 6.3 percent of all transportation revenues.( The actual amount depends upon debt service.)

It looks like the debt service provisions in Title 9, Chapter 9 and the distribution formula of Title 67-3-901 (3) are being bypassed by sending money directly to the local governments. This should make more money available for transit out off highway funds again.

It is my opinion that the provisions for a new gas tax and the registration tax are clearly aimed to provide relief to limitations on mass transit. Nationwide, less than 5% of the population uses mass transit and I suspect that it is a lot lower in Tennessee. Mass transit requires the government to buy rolling stock, track sometimes, insurance, chauffeurs and maintenance. It is for a specific purpose and has a specialized benefit to a small population. What it actually does for congestion or air pollution is not worth the cost of expanding it.

While they are mucking about in transportation matters, it would be nice if they also cleaned up the law in terms if the apparent conflicts and work arounds in Title 67 and Title 54.