Some states consider raising gas tax to pay for roads
Fixing roads might be as simple as raising the gasoline tax, or at least that is what some states are betting, according to The Wall Street Journal.
Connecticut’s first-year governor is proposing to raise the state tax on a gallon of gasoline by 3 cents, and Maryland’s legislature is considering a dime increase. Officials in Nebraska, Hawaii, Virginia, South Carolina and South Dakota have considered proposals to raise the gas tax in recent months, according to transportation experts and information compiled by the National Conference of State Legislatures. Oregon has already raised its tax 6 cents this year.
Fuel taxes are the primary source of transportation funding for most states, with vehicle registration fees the next largest.
State officials across the country are concerned that the opposition of both the White House and most members of Congress to raising the 18.4 cents-a-gallon federal gas tax will mean gaping holes in states’ highway and transit budgets.
The federal gas tax, of which all but a fraction is devoted to transportation funding, hasn’t changed since 1993. Without a new source of revenue, spending from the federal Highway Trust Fund, which finances an average 45 percent of states’ highway and transit capital costs, will plunge to $10.7 billion a year from a current estimated $43 billion in fiscal year 2013, according to the American Association of State Highway and Transportation Officials.
For the full story in The Wall Street Journal, click here.