A long-awaited report from the state’s chamber of commerce recommends lawmakers come up with $375 million more a year to fix the states crumbling roads and bridges and offers a “menu” of tax and fee increases that could fund it.
The task force doesn’t specify what taxes or fees to raise to provide the $375 million but offers a “menu” for lawmakers to consider and shows the amount of money increases in each category would generate. The study notes:
A 1-cent per gallon increase in the state’s 18.4 cents a gallon excise on gas and diesel would provide $21.7 million.
A $10 fee increase on vehicle license plates would provide $27.5 million.
A general sales tax increase — exempting groceries and medicine — would provide $177.8 million for each .05 percent increase.
A sales tax on gas and diesel would generate $23.7 million for every .05 percent increase.
A 2 percent excise increase on rental cars would generate $2.5 million.
It also lists other potential taxes or fees, including a “vehicle-miles-traveled” fee, but says the revenue is unknown and collecting the fee would be costly. It also notes that state law now allows toll roads, but the state currently has none.
Read the full story here: http://www.clarionledger.com/story/news/politics/2015/12/18/taxes-roads-bridges/77552620/.