Featured

Fuel-tax drop reflects need for funding solutions

July 19, 2019

John Finnerty, who covers the Statehouse for newspapers in Johnstown, Meadville, New Castle, Sharon and Sunbury, dug up an interesting story recently noting that Motor License Fund revenue fell $58 million short of projections in the recently ended fiscal year.

While the percentage of the shortfall is relatively small, it portends a growing threat to highway funding in Pennsylvania. As fuel efficiency continues to improve, and demand for alternative fuel vehicles grows, our reliance on a consumption tax presents challenges.

As we mentioned a few weeks ago, Rep. Mike Carroll, of Luzerne County, Democratic chair of the House Transportation Committee, has introduced a bill that would establish an annual fee for entirely electric vehicles. The bill advanced through the transportation panel with overwhelming support and awaits a full House vote and Senate consideration this fall.

While EVs are supposed to pay an alternative fuel tax to make up for the revenue lost by avoiding a gasoline or diesel tax, the procedure is cumbersome, and many EV owners are probably not even aware of the requirement. The Carroll bill would eliminate the alternative fuel tax and replace it with the annual fee.

There are other issues that need to be resolved, such as how to make sure that hybrid owners, who pay some fuel taxes, pay their fair share for road maintenance and repair. Perhaps they will be asked to pay a smaller fee than EV owners.

Representative Carroll believes the ultimate answer will be a mileage-based fee, which would most closely align the cost of highway maintenance with the responsibility for wear and tear.

To read Finnerty’s entire article, click here.

 

Sorry, Comments are closed.

Comments

>