Richardville Proposal Calls for Drastic Transportation Funding Reform

As expected, the Senate had plans for the transportation and infrastructure funding reform package sent over by the House two weeks prior – significant plans. Senate Majority Leader Randy Richardville (R-Monroe) unveiled his plan Wednesday to increase the proposed new wholesale gas tax to 15.5 percent by 2018.

House Bill 5477, part of the multi-bill package of which a portion was approved this week by the Senate Infrastructure Modernization Committee, was the only measure changed. The bill repeals current fuel taxes – 15 cents per gallon on diesel and 19 cents per gallon on gasoline – and replaces those taxes with a percentage tax on the wholesale price.

Richardville’s proposed changes to HB 5477 move the percentage wholesale tax from 9.5 percent on January 1, 2015 to 11.5 percent in 2016, 13.5 percent in 2017, and 15.5 percent in 2018. This change would bring the overall package to a point of generating between $600 and $700 million from the start, and $1.4 to $1.5 billion when the percentage reaches its peak in 2018.

While poll after poll has shown that voters are demanding something be done relative to the state’s road conditions, a proposal of this magnitude is likely not to pass either legislative chamber without significant effort. The 15.5 percent wholesale tax, for example, is the equivalent of a roughly 45 cent per gallon tax under the current system.

posted by PAA Online , Friday, May 23, 2014 9:45 AM
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