1/15/07-The state of Utah needs to do something to pump life into the state's struggling transportation system, according to a state lawmaker.
Rep. Wayne Harper, R-West Jordan, is expected to introduce a bill that would trim the state's per-gallon fuel tax by 9 cents. In return, he wants to impose a 6.5 percent sales tax on all fuel purchases, the Deseret Morning News reported.
Implementing a sales tax on fuel would result in higher prices at the pump where consumers now have 24.5 cents tacked on to each gallon purchased.
Supporters contend the fuel tax is not an adequate funding source because it is losing value with inflation and as more motorists shift toward more fuel efficient vehicles.
Applying a sales tax to purchases of fuel would provide the state with a more consistent source of revenue for roads, Harper told the Morning News. The fuel tax doesn't increase with inflation. As a result, it doesn't provide enough revenue to sustain growth, he said.
Opponents counter that fuel prices are very volatile. They would prefer a tax system that relies on stable revenue sources.
The Legislature opened Jan. 15. The session runs through the end of February.