Pro Biz Group Advocates Gas Tax Hike to Pay for Roads, Rails

None by KCPW

Plan Could Raise $350 Million

(KCPW News) The state of Utah currently spends almost $800 million from its general fund on transportation. The Utah Taxpayers Association wants to shift that burden by increasing the state's portion of the gas tax:

"We're talking about a substantial increase of about 25 cents - that'd be doubling [the current state tax or] ... about $350 million."

Mike Jerman is vice president of the Utah Taxpayers Association. The state gas tax hasn't been raised since 1997 and it hasn't been adjusted for inflation, he says. As a result, Utah lawmakers have come to rely more and more upon the general fund to build roads and other transportation projects. Jerman says a state gas tax hike would be revenue neutral, drawing down income taxes as it goes up. And it would create a domino effect, freeing up general fund dollars for other state budget demands:

"That would free up general fund dollars from transportation over to higher ed, then an equivalent amount of income tax dollars would be freed up from higher ed to go over to public ed, K-12, then there'd be a tax cut. So it would be revenue neutral as far as government and taxpayers are concerned."

In addition to raising the state gas tax, the Utah Taxpayers Association wants lawmakers to prioritize roads and rails projects given the greatest potential to reduce traffic congestion. Transportation funding will be a main topic of conversation at the pro-business tax advocacy group's annual conference on taxes Friday at Little America.

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