La. Gov.’s task force looking to raise gas tax

Louisiana residents may want to make sure they save their Christmas money this year because they could face more tax increases in 2017.
On Thursday, December 1, 2016, a task force named by Governor John Bel Edwards, whose job is to find ways to fund Louisiana’s $13 billion backlog of roads and bridges needng repair, proposed that funding for roads and bridges needs to increase by $700 million per year.
If you are wondering how that large of an increase in revenues would even be possible, have no fear because the Governor’s Task Force on Transportation Infrastructure Investment believe they have found the way to make this happen.
Unfortunately though, it looks like the state will be reaching into the tax payers pockets once again to take more money.
The 18-member group announced last week that the “most reliable” souce of funding is the state’s gasoline tax, and that they are looking into doubling that tax.
Drivers in Louisiana are currently paying 38.4 cents per gallon in gas taxes, including 20 cents that goes to the state.
Of the 20 cent state tax, 16 cents is suppose to be used for road and bridge projects, while the other four cents is used to pay off a 1989 bond issue for road and bridge work statewide.
On top of the gasoline tax Louisiana tax payers already pay, it would take an icrease of about 23 cents to come up with the $700 million the task force says we need.
Senate President and member of the task force John Alario told reporters that they “will go through the political process.”
Alario also said, “I think this is a good starting point, understanding that democracy is a give and take so we will see what happens.
The task force is also recommending that a variety of commercial truck fees increase to help finance bridge improvements statewide.
At this time, the special permit fees for commercial trucks revenues total $25 million a year, while their registration fees total $60 million.
If the registration fee and special permit fee is increased, that money will go to financing statewide bridge improvements.
Another proposal that the task force is looking at, which is called indexing, would link the sate gasoline tax to the rate of inflation or other costs.
The final vote on these matters have been scheduled for December 13, 2016. All of the state’s suggestions will be submitted to Gov. Edwards by January 1, 2017.
If Edwards adopts any of the recommendations from the task force, then it will come down to the House and Senate approving it.
If the House and Senate muster up the necessary two thirds that they need to pass this, then prepare to see what you pay at the gas pump increase sometime next year.
To read the full details on the proposals that are being considered, visit http://wwwsp.dotd.la.gov/Pages/default.aspx.