11/18/09-A state legislative panel is looking at ways to pay for a multiyear, statewide transportation improvement plan. Possibilities that are being considered for generating revenue include higher fuel taxes and fees.
The Special Committee on Transportation is looking into replacing the state’s 10-year, $13 billion transportation program that ended this summer. They are pursuing options that include raising another $3 billion to $6 billion during the next decade. Other more expensive and less expensive options also continue to get consideration.
Appreciating the task in front of them – getting tax increases approved during such tough economic times – advocates for a new transportation plan are touting the boost to roads and bridges while helping the economy and creating more jobs.
Among the tax increases to draw consideration are adding a sales tax to fuel purchases, increasing the per-gallon tax rates on gas and diesel, and increasing vehicle registration fees.
Removing the sales tax exemption on motor fuels reportedly could generate $3 billion over 10 years. Currently, nine states apply a sales tax to fuel purchases.
The panel’s goal is to have their recommendations ready by the end of the year. The full Legislature could consider the plan during the regular session that convenes in mid January.