Tom Warne Report, 4 May 2013
Vermont’s governor signed a transportation budget bill into law this week that will raise $630 million per year, with the included fuel tax rate increases. Gov. Peter Shumlin’s approval means the state’s 19-cent excise tax on gasoline will go up May 1, by 5.9 cents per gallon.
The measure will add a 2 percent sales tax to the cost of gas, and the cost per-gallon tax drops by about one cent. The change is designed to make up for declining gas sales that result in less funding for road work.
Vermont’s excise tax on diesel is currently 29 cents, and is scheduled to increase by 2 cents on July 1. The rates for diesel will rise by another penny in one year.
House and Senate lawmakers agreed to the H510 funding bill after previously disputing whether truckers should pay higher taxes. Without the bill, the state would have lost out on nearly $60 million for roads and bridges.