Wyoming committee advances fuel-tax draft but tables final action after debate on impact and indexing

A legislative working group forwarded a highway-funding bill that would raise Wyoming’s gasoline, diesel and alternative fuel taxes by 5 cents per gallon in two steps, but the committee tabled final action after lawmakers sought more data and time for public outreach.

The bill draft (26 LSO 64 v0.8), introduced to the Joint Transportation Committee by legislative staff member Talise Hansen, would increase the state gasoline tax from 24 cents per gallon to 29 cents beginning July 1, 2026, and to 34 cents after a second step; diesel and alternative fuel rates use the same schedule. The bill includes conforming changes for credits on nonroad fuel and an effective date of July 1, 2026.

Lawmakers and agency officials said a small increase will not close the department’s multi-hundred‑million dollar funding gap but could preserve parity with neighboring states and capture some revenue from out‑of‑state motorists. "Total for every penny increase, it raises fuel tax revenue by 6,800,000.0," said Dennis Byrne, chief financial officer with the Wyoming Department of Transportation. "Of that $6,800,000, YDOT would receive 4,500,000.0. That's per penny." Byrne’s figures were used in committee discussion to estimate that a 5‑cent increase would generate roughly $22.5 million for YDOT annually.

Committee members repeatedly described the department’s capital…