Wyoming Approves Gas Tax Increase — Virginia Still Debating Funding Increase

The Wyoming Senate this week, with a vote of 18-12, passed legislation to increase the state’s motor fuels tax by ten cents per gallon for highway improvements. The bill is expected to generate approximately $72 million annually in revenue for road maintenance and improvements in FY 2014, which begins July 1, 2013.  Of this revenue, approximately $47.4 million will be invested annually in state highways, $6.8 million for municipal streets, and $16.4 million for county roads. The House has already passed the bill, which will now go to Governor Matt Mead (R) who has publicly expressed his support for this legislation.   AGC’s Wyoming Contractor’s Association (WCA) was a leader in the Fuel Tax Coalition Partners, a broad array of Wyoming companies, employees and families who pushed for the bill’s enactment. In Virginia, the legislature continues to consider Governor Robert McDonnell’s transportation proposal. He proposed eliminating the state’s 17.5 cents per gallon fuel tax and replace the lost revenue by increasing the state’s sales and use tax (SUT) by 0.8 percent and dedicating that portion for transportation, increasing the portion of the existing SUT for transportation, increasing the vehicle registration fee by $15, and imposing a $100 fee on alternatively fueled vehicles. The House approved most of the Governor’s proposal. The Senate, however, approved a 5 cents per gallon increase in the gas tax and indexed it to inflation moving forward. The Senate plan would also increase the tax on the wholesale price of fuel and raise it again if Congress does not come through with the internet sales taxing legislation. Under the Senate plan local jurisdictions would be granted the authority to impose local sales tax for transportation projects. It leaves the general sales tax rate alone. A House and Senate Conference Committee is currently meeting to negotiate a compromise.