Apparently fed up with Congress’s unwillingness to increase fuel taxes to fund highway infrastructure improvements, about a third of all states this year have gone ahead and done it themselves.
According to a survey by the Associated Press, nearly 16 states have raised their fuel taxes or incorporated other types of levies to help cover the cost of maintaining highways and bridges. Bout half of these states are run by governors who are Republicans, a party usually reluctant to increase any type of taxation.
Congressional Inaction on Fuel Tax
The state fuel tax increases come as Congress continues to struggle with the Highway Bill, which controls the federal fuel tax that is used to repair and maintain the interstate highway system, bridges, and other national infrastructure.
The federal fuel tax — which taxes gasoline at 18.4 cents per gallon and diesel fuel at 24.4 cents per gallon — hasn’t changed since 1993. Since 2005, Congress has voted 34 times to kick the can down the road with short-term funding solutions.
The current Highway Bill is scheduled to expire Oct. 29 if no action is taken. But many observers believe yet another two- to three-month extension will be passed to delay a spending decision once again.
Many members of Congress are reluctant to ask Americans for more taxes out of fear that voters will take their revenge at the ballot box. Yet without additional funding, maintenance and improvement of the country’s 166,000-mile interstate highway system could be at risk.
Many States Take Action
Numerous state legislatures have taken up the issue on their own, voting to increase state fuel taxes in order to fund infrastructure maintenance and upgrades.
Among the states taking action this year include:
- Connecticut, where Gov. Daniel Malloy (D) signed a $2.8 billion bond project as part of a $10 billion transport plan that will be spread out over five years. Malloy has said he wants a $100 billion overhaul of the state’s infrastructure spread out over the next 30 years.
- Iowa, where Gov. Terry Branstad (R) agreed to increase the state fuel tax by 10 cents per gallon, the first time the Iowa fuel tax was increased since 1989. The move was part of a $215 million transportation bill passed by the state legislature
. - Delaware, where Gov. Jack Markell (D) signed a bill to increase the state’s vehicle sales tax by 4.25%. The move is expected to raise $330 million in new funds over the next six years
. - Georgia, where Gov. Nathan Deal (R) agreed to a deal that raises the state’s gasoline tax to 26 cents per gallon and its diesel tax to 29 cents per gallon. Combined ith other fees, the move is expected to raise $1 billion for infrastructure improvements over the next five years.
- Idaho, where Gov. C.L. “Butch” Otter (R) agreed to raise the state fuel tax by 7 cents per gallon, as well as other fee increases which will raise an estimated $95 million per year for infrastructure.
- Louisiana, where Gov. Phil Bryant (R) issued bonds that will raise $200 million to rebuilt the state’s bridges.
Meanwhile, other states are considering increases in fuel taxes and other fees to raise money for rebuilding roads, bridges, and other infrastructure.