8/18/10-Despite a warning from the head of the Wyoming Department of Transportation about the long-term deterioration of roads without substantial increases in revenue, a special legislative panel opted against a proposal to charge sales tax on fuel purchases. Other options will be considered this fall.
The Joint Transportation, Highways and Military Affairs Interim Committee met recently to vote on two draft bills that could be considered during the 2011 regular session. Faced with flat federal funding and increased costs, lawmakers appear to be open to various options.
But a proposed 4 percent sales tax on gas and diesel at the point of wholesale distribution was rejected on a 7-6 vote. Sought by Sen. Michael Von Flatern, R-Gillettee, an anticipated $56 million annually in sales tax revenue would have been used solely for roads.
Local governments would have had the option to raise the tax by up to 2 percent, which WYDOT estimated could add up to another $28 million a year if all counties followed suit.
The committee opted to delay consideration until its October meeting a proposed dime increase to the state’s tax on gas and diesel.
The panel is in the process of working through various funding methods to help pay for transportation work. One option for funding work on roadways such as Interstate 80 includes increasing the state’s tax on diesel and gas by a dime. Sen. Gerald Geis, R-Worland, is calling for the 14 cent-per-gallon tax to rise to 24 cents.
Advocates say a penny increase would be expected to generate about $6.8 million.
Geis’ effort is similar to a plan endorsed by the panel nearly a year ago. Last fall, lawmakers opted to pursue increasing the tax rate over the course of two years. During a meeting this spring lawmakers decided against the two-year phase-in.
Out-of-state drivers appear to be the target of the proposed tax increase. WYDOT officials say that 53 percent of revenue collected from the fuel tax is paid by non-residents.
However, critics say there isn’t enough will for the state to increase taxes. Another funding scenario that could get attention in the months to come is adding tolls along I-80.
The Owner-Operator Independent Drivers Association is opposed to efforts to pursue tolls on existing highways built with tax dollars. The Association believes that states must come up with ways to fund highway expansion without putting an additional burden on truckers and on others already paying their fair share in taxes.
WYDOT officials say something must be done because Wyoming doesn’t have enough state or federal money to maintain the interstate. They say the situation will only get worse with traffic projected to double in 30 years. Trucks account for about half of the traffic.

8/5/10-A special legislative panel is in the process of working through various funding methods to help pay for transportation work. Among the options being discussed are a fuel tax increase, charging sales tax on fuel purchases and tolls.
The Joint Transportation, Highways and Military Affairs Interim Committee is scheduled to meet next week to vote on two draft bills that could be considered during the 2011 regular session. Faced with flat federal funding and increased costs, lawmakers appear to be open to various options.
One option for funding work on roadways such as Interstate 80 includes increasing the state’s tax on diesel and gas by a dime. Sen. Gerald Geis, R-Worland, is calling for the 14 cent-per-gallon tax to rise to 24 cents.
Advocates say a penny increase would be expected to generate about $6.8 million.
Geis’ effort is similar to a plan endorsed by the panel nearly a year ago. Last fall, lawmakers opted to pursue increasing the tax rate over the course of two years. During a meeting this spring lawmakers decided against the two-year phase in.
Out-of-state drivers appear to be the target of the proposed tax increase. Wyoming Department of Transportation officials say that 53 percent of revenue collected from the fuel tax is paid by non-residents.
Also drawing consideration is imposing a sales tax on fuel purchases. Sen. Michael Von Flatern, R-Gillette, wants the state’s 3 percent sales tax to apply to fuel sales. Revenue would be used solely for roads.
Another funding scenario that is expected to get attention is adding tolls along I-80. A similar effort was sought early this year at the statehouse. It called for WYDOT to make a formal request to the Federal Highway Administration to set up tolling booths.
The Senate-approved bill was killed in the House Transportation Committee.
The Owner-Operator Independent Drivers Association is opposed to efforts to pursue tolls on existing highways built with tax dollars. The Association believes that states must come up with ways to fund highway expansion without putting an additional burden on truckers and on others already paying their fair share in taxes.
OOIDA issued a Call to Action to its Wyoming members in the days before the bill died.
The tolling option, however, received a boost recently with the results of a Casper Star-Tribune poll that found half of Wyoming voters favor charging out-of-state truckers to use I-80.
WYDOT officials say something must be done because Wyoming doesn’t have enough state or federal money to maintain the interstate. They say the situation will only get worse with traffic projected to double in 30 years. Trucks account for about half of the traffic.