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Committee rejects committee‑sponsored fuel‑tax increase after narrow vote; debates local impacts and revenue options
Summary
Lawmakers debated 26LSO64, a draft to raise fuel taxes (two‑step increase), heard industry and tribal testimony on local impacts and IFTA effects, adopted a motion to limit the draft to a one‑time 5¢ increase in committee but the amended bill failed on final roll call (5‑aye, 7‑no, 2‑excused).
The Transportation Committee spent extensive time on bill draft 26LSO64, a highway‑funding proposal that would raise gasoline, diesel and alternative fuel excise taxes by 5¢ for two years and then by another 5¢ thereafter (bringing base rates from 24¢ to 29¢ then 34¢). Talise Hanson (LSO) explained the conforming language and effective date (proposed 07/01/2026).
YDOT Director Darren Westby and industry witnesses described the funding rationale and the tradeoffs. YDOT said district‑level maps showing loss‑of‑service scenarios could be prepared on request to help lawmakers evaluate where reconstruction or maintenance would be deferred without new money. Dennis Byrne, YDOT CFO, told the committee each penny of fuel tax yields about $4.5 million directly to YDOT and that a 5¢ increase would provide approximately $22.5 million to the department.
Industry testimony supported the need for sustainable funding but warned of distributional and operational effects. The Wyoming Petroleum Marketers Association explained that excise taxes are collected at wholesale (terminal/ rack) and urged distributor‑level continuity to avoid new reporting burdens for small retailers.
Public witnesses included the Wyoming Trucking Association, Associated General Contractors, fuel jobbers, tribal transportation representatives and farmers. Wind River Intertribal Council’s transportation director asked the committee to address an expiring MOU that affects reservation fuel tax reimbursement and requested dialog about revenue sharing for tribal road maintenance.
Representative Nicholas moved — and Representative Larson seconded — an amendment to make the proposal a one‑time 5¢ increase (instead of a staged 10¢). Committee discussion noted political feasibility and parity with neighboring states; Senator Kolb and others preferred a larger increase but the sponsor argued a smaller single increase had a better chance for floor consideration. On roll call the amended measure failed (committee recorded 5 aye, 7 no, 2 excused) and the committee will not carry the draft as a committee‑sponsored bill.
Committee members asked YDOT for district‑level impact visuals and requested the working group circulate a redrafted bill and supporting materials to members. Several members urged continued work on long‑term revenue options beyond periodic fuel‑tax increases.
Next steps: staff will circulate revised drafts and YDOT will provide district impact maps; sponsors may choose to pursue the measure on their own rather than as a committee file.
