What happen to all the Fuel taxes?

greenspun.com : LUSENET : I-695 Thirty Dollar License Tab Initiative : One Thread

I came to Washington in the middle of last year at a time when the price of a gallon of regular gasoline was in the region of 1 dollar. Presently the price is in the $1.45 region. This represents a 45% increase in taxes from car fuel sales. This increase represents a $330 increase in fuel per annum for my use. The tax portion of this is well short of the price of my tabs, however I do believe that a gas tax what be much more fair. The larger your vehicle, the more gas it uses - Similarly the larger the impact it has upon the environment. Compare a Ford Expedition to a generous family car like a Taurus or a Camry. If you live in excess you should be willing to pay the excess.

-- Silver Ring (SilverRing@earthlink.net), October 10, 1999

Answers

I believe the fuel taxes are mostly on a per gallon basis, so if the price per gallon goes up, the revenue from fuel taxes could actually go down as a result of reduced discretionary driving. Does anyone have specific information on this question?

-- dbvz (dbvz@wa.freei.net), October 10, 1999.

The state gas tax is $.23 a gallon. It does not go up or down due to the price of gas. The tax has also not been raised since 1991.

It used to be that the gas tax was the primary source of revenue for road construction and maintenance. However, as the years go by without a change in the tax, the amount of revenue tends to stagnate while the costs of contruction go up. So in fact, we're paying the lowest gas tax in about 10 years adjusted to inflation, and it keeps going down. I forget the exact numbers, but I believe that had the gas tax been pegged to inflation when it was first created in 1921, we'd be paying around $.40 per gal

-- Patrick (patrick1142@yahoo.com), October 10, 1999.


Yes, the gas tax is known as an excise tax, and does not fluctuate when the price of gasoline rises or falls. The gas tax merely pays for maintenance. You know, when you see ten guys standing around watching one guy work. That's known as road maintenance.

A higher gas price does lead to less discretionary driving and more carpooling. Hence, higher oil prices lead to less government revenues. Unless you're a state like Alaska, Texas, or Louisiana. Actually, recent federal law gives Washington some more monies as a result of being close to Alaska.

-- Matthew M. Warren (mattinsky@msn.com), October 10, 1999.


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