Lawmakers Consider Gas Tax Hike to Fund Roads

Tom Warne Report, 9 September 2013

ClarionLedger.com – September 4, 2013

Two proposals to raise $400 million to $600 million are under consideration by a Mississippi state Senate transportation task force to bring needed funding to state roads and bridges. Senate Transportation Chairman Willie Simmons, D-Cleveland, is co-chair of the task force and believes now is the best time to raise revenue. He said the closer it gets to the 2015 election, the less likely lawmakers are to propose tax increases.

Last month, Simmons proposed “Option 1,” that would increase taxes on gasoline, diesel, car tags, titles, and other fees, as well as remove some sales tax exemptions on agriculture and manufacturing. The option would raise $700 million in new highway and bridge maintenance funding.

The second option would raise about $600 million, largely funded by gas and diesel fuel tax hikes of 7 cents each per gallon, plus $10 tire tax and a $5 registration fee.

The task force has been meeting for several months, and has talked with city and county officials, business and industry leaders, as well as transportation experts about the state’s transportation needs. Highway construction costs have risen 300 percent over the past 26 years since the last fuel tax increase, according to Central Transportation Commissioner Dick Hall, in his report to the task force.

Hall said he is in favor of raising the gas tax because only five states in the country have a lower fuel tax rate than Mississippi.

If the task force can agree on some proposals, they will be presented to the public in community meetings and then recommendations can be made to the Legislature by the end of the year.

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