NASHVILLE — Tennessee State Representative Monty Fritts has proposed suspending state sales taxes on gasoline and food until July 1, 2026, citing $136 million in revenue overcollection through the first 44 weeks of the fiscal year, according to the Department of Revenue. In a letter to House Speaker Cameron Sexton and Governor Bill Lee, Fritts said Tennessee had already met its annual revenue growth target as of April 30.

Fritts, a Republican who represents Kingston and is running for governor, argued that continuing to tax gas and food would contribute to what he called “overcollection.” He said consumers are “really hurting” from costs related to the Iran war. Fritts added that a tax holiday “cannot fully make up for the sharp price increases we have seen since the end of February, but they can go a long way toward helping Tennessee families find ways to make ends meet.”

President Donald Trump ordered strikes on Iran on February 28, 2026. In response, Iran closed the Strait of Hormuz, blocking about one-fifth of the world’s oil from reaching global markets. According to AAA's tracker, the national average price for regular gasoline rose to $4.391 per gallon from $2.56 in February. In Tennessee, the average per-gallon cost is $4.02, with the highest prices largely in rural counties.

Tennesseans pay 26 cents per gallon in state gas tax and 4 cents for every dollar spent on food. In May and June of the previous year, the state collected $153.5 million in gas tax and $137 million in food sales taxes. A two-month suspension of these taxes could save each adult resident more than $50, based on population-wide distribution of collections. Sales and fuel taxes account for more than 72% of Tennessee’s state tax revenue.

House Speaker Cameron Sexton has not directly responded to Fritts’s proposal as of May 28. Sexton said Tennessee gas prices are the 10th lowest in the country and the state’s gas tax is the 32nd lowest. He added that Tennessee’s gas taxes are collected wholesale, not at the pump, so “any reduction wouldn’t automatically lower prices for consumers,” and would be up to individual station owners. Sexton also said, “I understand campaigns are trying to find an issue that resonates, but giving handouts to more out-of-state residents than in-state residents during the peak travel season isn’t financially conservative.” The governor’s office had not responded to a request for comment as of the article's publication.