10/26/07-An effort is expected to be made in Idaho during the 2008 regular session to increase fuel taxes by as much as 10 percent.
Officials with the Idaho Transportation Department say boosting the 25-cent-per-gallon tax rate on diesel and gas is part of a package of initiatives sought to generate as much as $200 million annually for roads. It is estimated to cost $20 billion during the next 30 years to pay for road work throughout the state.
Without new money, DOT officials say new construction projects will be delayed and maintenance work will be scaled back. Snowplowing of roads also will be reduced, the Idaho Statesman reported.
Idaho relies on state and federal fuel taxes and registration fees to pay for road and bridge work. However, those funds haven’t been keeping up with rising construction costs. More fuel-efficient vehicles also are contributing to the dwindling revenues to foot the bill for transportation projects.
Options to increase the tax collected on fuel consist of charging more on a per-gallon basis, adding a sales tax on the total amount purchased or increasing the fuel tax that distributors are responsible for paying, the Statesman reported.
Increasing vehicle registration fees is another option drawing consideration.