WASHINGTON -- As Congress revisits raising the federal gas tax to rescue the drained Highway Trust Fund, some states--even some led by Republican governors and with Republican-dominated legislatures--are weighing increases of their own.
They include:
- Iowa. Republican Governor Terry Branstad is pushing for increased funding for the state's roads in 2015, telling The Des Moines Register after his re-election last November, "The discussion will start now. The timing is good because gas prices have dropped significantly. That makes it a little more palatable to the public." The state is facing an annual $215 million shortfall in its infrastructure funding. Ideas under consideration include a 10-cent-per-gallon (CPG) increase in the state tax on gas and diesel; or cutting the state gas tax to 16 CPG while levying a 5% wholesale tax.
- Michigan. The Republican-dominated state legislature, with Gov. Rick Snyder's support, approved placing a gas-tax increase proposal before voters in a May 5 ballot. As reported by The Lansing State Journal, the proposal, which would generate $1.3 billion annually, would increase the state sales tax from 6% to 7%, while removing the sales tax from fuel purchases. If this measure is approved, then other fuel tax bills would be enacted. This includes converting the 19-CPG state gas tax to one connected to the price of gasoline, starting at 41.7 CPG and rising each year with a cap of inflation plus five cents.
- Utah. Legislators in Utah are pushing to raise more funding for transportation, with proposals that include increasing the state gas tax by around 10 CPG and indexing it to inflation. Another proposal would enable counties to increase their sales taxes by one-quarter cent per dollar purchase, The Salt Lake Tribune reported, with the money generated to fund local road projects. While the Republican-led Senate and House have not necessarily agreed on the proposals, there is general agreement that a tax increase is in order.
To make the tax increases more palatable, some politicians are describing them as "user fees," according to The Wall Street Journal. This includes targeting drivers of alternative-fuel vehicles, whom some argue benefit from the roads but are not paying into the system that maintains them. In Utah, for example, one proposal would increase the registration fees on electric or alternative-fuel vehicles.
Meanwhile, two other Republican governors--Chris Christie of New Jersey and Dennis Daugaard of South Dakota--have not endorsed a gas-tax increase but signaled openness to considering it, the Journal reported. As Christie has said, "everything is on the table for discussion" with the state legislature in coming up with more infrastructure funding.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.