Senate Advances 10¢ Gas-Tax Increase to Ease Road-Funding Shortfall

Senate Bill 160, proposed to raise motor fuel tax by 10 cents per gallon (5 cents on diesel), drew extended debate on Feb. 13 as senators wrestled with funding needs for road maintenance, distribution to B&C road funds and protections against future raids on transportation revenue.

Sponsor Sen. Van Tassel argued the last significant motor-fuel increase was in 1997 and that purchasing power has eroded; he said the increase would direct roughly 30 percent to the B&C road fund (local governments) with the balance to the state transportation maintenance fund, and estimated the average driver could see about $48 per year in additional fuel costs under the proposal. Senators supported amendments and discussed indexing and safeguards to keep funds for maintenance and bridge replacement.

Outcome: After debate and multiple senators’ remarks in favor and against, the Senate moved SB160 to third reading and approved it for further consideration; recorded votes on the reading passed with a majority, advancing the bill in the legislative process.

Why it matters: Legislators described a structural shortfall in transportation funding and argued the increase is a transparent user-fee mechanism to maintain roads and bridges; critics raised concerns about regressive impacts and rural price variation.

Excerpts: "It will commit... $130,000,000 to the opportunity of fixing some of these roads," a sponsor summary said on the floor; sponsors also pledged to explore indexing mechanisms to avoid future large 'shock' increases.

Next steps: The bill will move to the House for consideration and final reconciliation of rate, indexing and earmark language.