Tom Warne Report, 15 December 2012
Two initiatives progressing in Wyoming could potentially boost transportation revenue by nearly $90 million a year. The two proposals were approved for sponsorship by the Legislature’s interim transportation panel last week which would increase the state’s fuel tax rate and vehicle registration fees to help close a $135 million funding gap for roadwork.
The first bill would increase the state fuel tax by 10 cents, and would be the first hike in 14 years. The current gas tax is 14 cents per gallon. The second proposal would double the vehicle registration fee, which has remained unchanged for 38 years. If approved, non-commercial vehicles would pay up to $120 for the largest vehicles.
About $72 million would be raised by the fuel tax increase and the registration fee hikes would raise an additional $18 million. About $64 million would go toward state highways and the remainder would be spent on local projects.
Gov. Matt Mead recommended that the tax rate should be raised to help provide a long-term funding source for transportation work. He said if lawmakers opt not to approve the tax increase, they need to divert part of the state’s severance tax to highways. Bills endorsed by the interim panel can be considered during the session that starts Jan. 8.
Can we stipulate that a fee that hasn’t been raised in 38 years is out of date and needs to be adjusted? Even the most ardent anti-tax person can’t believe that services bought 38 years ago for that amount can still be delivered today without an increase. TW