DALLAS - With a well-funded coalition behind them, two Utah lawmakers are pushing different formulas for raising the state's fuel tax for the first time since 1997.
Senate Bill 160 by Sen. Kevin Van Tassell, R-Vernal, would raise the 24.5-cent gasoline tax 10 cents and the 24.5-cent diesel fuel tax by 5 cents.
The bill, which won Senate approval on first reading, would raise about $130 million annually for maintenance and repairs on state freeways and major roads, Van Tassel said.
Rep. Johnny Anderson, R-Taylorsville, is sponsoring House Bill 362 that would replace the current flat gas tax with a percentage of the per-gallon price, as happens with most sales taxes.
While the two versions would have to be reconciled before final passage, support for increasing fuel taxes in the heavily Republican state is well organized and well-funded.
The combined lobbying organization calling itself the Utah Transportation Coalition organized a rally featuring state legislators and sign-wielding advocates of raising the tax.
"With vigorous lobbying efforts, the Coalition will ensure long-term success of our objectives," the coalition vowed on its Web site.
A recent survey by the Utah Foundation found that 82% of cities and 95% of counties in Utah face critical transportation funding requirements, and would need 30% more in funds to meet current needs.
"As a chamber of commerce and Utah's business leader, we generally oppose increases in income, sales or property taxes that are not supported by the public," the Salt Lake Chamber of Commerce declared in a recent opinion piece in the Salt Lake Tribune. "But we have been adamant that the State of Utah should ensure that transportation user fees are increased and adjusted to preserve purchasing power to meet critical mobility needs."
If the tax hike wins approval, Utah would join Iowa and several other states that willing to reconsider longstanding opposition to any form of tax increase.
The fuel tax push coincides with falling pump prices after crude oil lost half its value in the past six months. Utah is an oil-producing state but has not suffered revenue drops as severe as those in more oil-dependent states.
