Scrapbook Photo 03/17/24 - 120 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/33kb5tpe
Corbett’s Transportation Funding Plan Could Raise Wholesale Tax On Gasoline, Diesel

In several news reports over the past week, Gov. Corbett and other Administration officials have hinted that raising the wholesale tax on gasoline and diesel fuel by uncapping the Oil Company Franchise Tax could be a key part of their transportation funding proposal raising as much as $2.7 billion annually.

Currently there is a $1.25 per gallon cap on the wholesale tax that is paid by vehicle fuel distributors.  Although the tax is not directly on consumers at the pump or on the major oil companies that refine petroleum products, it ultimately is passed on to motorists and truck owners in the cost of their fuel.

Uncapping the tax was one on the menu of options included in Gov. Corbett’s Transportation Funding Advisory Commission recommendations in August of 2011.

The recommendation was also part of a funding package unveiled in October of 2011 by Sen. Jake Corman (R-Centre), Majority Chair of the Senate Appropriations Committee, who suggested phasing in the removal of the cap over five years.

At the time of Sen. Corman’s proposal, estimates were uncapping the tax would result in increasing the per gallon price of gasoline by 13.8 cents and 18.7 cents for diesel.

During the special session on Transportation funding in 2010, Gov. Ed Rendell made a similar proposal to uncap the Oil Company Franchise Tax as part of funding package designed to raise $3.5 billion a year.  The recommendation followed a transportation funding study conducted by Gov. Rendell’s state Transportation Advisory Committee completed in 2010.

Another centerpiece of the package would be implementing the newly passed Public- Private Transportation Partnership law for transportation projects signed into law as Act 88 in July.  The new law would allow the state to sign agreements with private companies to do bridge repairs paid for by imposing tolls on bridge users.

Corbett Administration officials also said raising driver license and vehicle registration fees could be part of the package.

NewsClips:

Corbett Promises Transportation Plan

State Struggles To Find Transportation Funding Solution

Editorial Page: PennDOT Secretary On Transportation Funding


12/10/2012

Go To Preceding Article     Go To Next Article

Return to This PA Environment Digest's Main Page