2007 at 10:43 am | posted by Rep. Craig Frank
Remember the phrase…you touch it, you pay for it!
Recently, I chaired a meeting of the House Revenue and Taxation Standing Committee (I’m the Vice-Chair). Under consideration was an interesting bill, HB158, sponsored by Rep. Wayne Harper. (Click HERE for Audio.) Wayne is one our state’s foremost legislative experts and advocates on reasonable tax policy.
HB158 partially addresses our need to look at future transportation funding mechanisms above what we are currently considering. With $16 Billion in transporation needs over the next 30 years…we need to seriously look at transportation funding. Generally speaking, people like roads, they just don’t like to pay for them–I’m no exception. Unfortunately, Utah has hit a sort of “critical mass” and the time has come to suck it up and pull out the wallet. Popular? NO. Necessary? YES!
As amended in committee, HB158 will provide for an additional “user fee” at the pump…a two cent increase in gas tax every other year for ten years–beginning in January of 2009. According to the Utah Taxpayers Association blog, this tax will provide $14 million a year for each penny increase. (Currently gas tax is 24.5 cents per gallon.) By formula, the first year’s (2009) revenue increase would be $28 million…Third year $28 million (total of $56 million)…Fifth year $28 million (total $84 million)…Seventh year $28 million (total of $112 million)…Ninth year $28 million (total of $140 million).
The other palletable portion of this tax policy is the implied “user fee” component. I’ve always appreciated the pay-as-you-go philosophy. Because this portion of the gas tax would specifically “earmark” for the Mountain View Corridor Project in Salt Lake County a dedicated revenue stream, commuters in Salt Lake would finance a portion of this massive north-south project on a regional level. This is GOOD.
This is just the tip of the iceberg. With billions of dollars needed for additional road and transit projects in Utah over the next few decades now is the time to look at tolling, impact fees, and licensing fees as potential transportation/transit financing mechanisms. Each of these “options” (tolling, impact, and licensing) is a form of “user fee.”
You touch it…you pay for it.