Posted on 01/02/2015 6:12:26 AM PST by thackney
Despite tumbling gas prices, North Carolina's tax on gasoline went up starting Thursday.
State leaders still said there won't be enough money in the coffers to cover the transportation projects statewide.
Fabian Escoto fills up his tank about once a week and word that the gas tax is increasing didn’t rattle him too much.
“As long as it's not too much, I don't think it's going to affect a whole lot of people,” Escoto said.
North Carolina's tax on a gallon of gas increased by a penny to 37.5 cents – the highest gas tax in the South and one of the highest in the nation.
The tax increase is not because of a new law.
The state sets the tax rate based on gas prices, so this increase was scheduled when gas was more expensive.
However, if gas prices continue to fall, the tax will go back down this summer.
Gas-tax money is the key funding source for transportation projects, but more efficient cars have contributed to a lack of funding and led state leaders to turn to other sources, like the proposed controversial toll lanes on Interstate 77.
Kurt Naas with the group Widen I-77 said it is a poor investment.
“If you don't have the money, then for heaven's sakes, let’s not spend it on a bloated project. Let’s spend it exactly where it's needed,” Naas said.
Gov. Pat McCrory has said this year he will recommend new revenue sources to the 2015 General Assembly.
A number of elected officials Channel 9 contacted said they expect a lot of legwork and research to be done on the transportation funding problem during the upcoming session, though they weren't certain a bill would actually pass.
I was out earlier and only saw the one station at the bottom of my hill; I’ll go by some other stations later and check their prices vs the last ones I saw 12/30. Thanks.
You are correct. However, when mileage improvements are made in vehicles the amount collected per mile goes down while the wear inflicted on the road remains roughly the same.
Not exactly the same, since the higher mpg vehicle is also usually somewhat lighter.
According to this site, 1976 F150s average 10 mpg, 2014 models average 16 mpg.
http://www.fuelly.com/car/ford/f-150
That’s a huge difference in gas taxes collected.
Luckily, average national gas taxes have roughly remained the same per gallon over this period, adjusted for inflation. But with more miles traveled per gallon, that’s less taxes paid per mile.
The 1976 F150 owner pays about $5.00 in gas taxes per 100 miles driven, the 2014 model owner pays about $3.12.
There is also the issue of whether the inflation-adjusted cost per mile of maintaining the system is the same as in 1976. I have no idea whether it is or not.
Here's an idea: Why not spend the money that was collected for it's intended purpose instead of blowing it on bullsh!t projects? How's that for starters?
With the money they collect we should be driving on roads paved with gold!
This is a wholesale price increase, not a retail price increase.
It may take a few days to completely spread through the retail sales.
And I bet five years from now the eternal “Under Construction” will still be going on at I-40. I made the big mistake of taking it home one time from Nags Head to Knoxville. I drove through at night because several 10 plus mile stretches were under Construction. That was in about 2002. I remember the same issues all the way back to the late 1970’s when I attempted to drive to Norfolk on it. One time cured me. My bet is this isn’t to cover interstate repairs but rather a hide it elsewhere tax for “Illegal Alien” cost to the state.
A classic approach. Skimp on maintenance to fund current projects and you can look good for now. Nobody ever got elected or re-elected by promising no new projects to maintain existing infrastructure. Always catches up to you, however.
“...wholesale price increase, not a retail price increase...”
Got it; thanks.
$1.72/gal. here? Where’s here?
Do you think the gasoline tax rate is unchanged since 1976? How many 1976 vehicles are still in regular use today?
How do you propose total miles versus miles driven in different states should be resolved?
Denton, Texas.
How much representation in this taxation?
You do not want to attract libtards to move into the countryside. Driving a 4x4 truck over potholes is preferable to having to deal with them. A raided transportation fund to keep them in the cities is a small price.
My bet is they already receive that as well at least partially. 18 wheelers must have permits {taxes} paid in all states driven through or used too plus they had to log their miles driven in any state. Some states even required a minimal fuel purchase there or paying a penalty. When I was driving a rig years ago we had a big notebook filled with state permits. My bet is tax diversions for funding projects elsewhere.
I used to work for an electrical utility in Houston. We had an intern pull the permit request for power line crossing and associated road construction on the Gulf Freeway, I-45 from Houston to Galveston. It seemed like it was always under construction.
Turns out it actually was. From the start of construction in 1948 to that time (early 90s), a portion of that ~50 miles of road was always under construction.
My point was simply that, adjusted for inflation, a given model of vehicle paid $5.00 per 100 miles driven in 1976 and pays $3.12 today.
The gas tax was about .12 per gallon in 76 and is .50 today. National average of course. That’s very nearly unchanged when you take inflation into account.
I’m not proposing a comprehensive solution. The only truly comprehensive solution would be national, which I don’t like because I prefer to keep our limited remaining federalism.
But that doesn’t mean I am prohibited from pointing out challenges faced by the present “system.”
BTW, as some have noted elsewhere in this discussion, urban drivers produce tremendous subsidies for roads in rural areas.
Put in place by elected officials. They don't have a king in North Carolina.
I wasn't trying to prohibit discussion. I asked a question that you haven't answered.
How do you propose total miles versus miles driven in different states should be resolved?
I’ll be perfectly willing to concede your point if you provide data that some significant percentage of gas taxes is spent on bike paths.
I’ll agree up front that mass transit subsidies and diversions to general fund are a big problem. I suspect they utterly dwarf any money spent on bike trails, but for some reason those are what tend to infuriate motorists most.
One bike trail near me was laid out along one side of a new toll road. The right of way was already paid for, so no cost there.
I’d be quite surprised if the bike trail construction added even 1% to the cost of construction.
I live in NC and advise all my friends a relatives heading South to fill up in VA, drive right through NC and fill again in SC.
The argument that increased fuel economy leads to lower revenues doesn't, in my mind, justify the intrusion into the lives of individuals necessitated by a per-mile tax. The simple solution to this is if revenues are falling in real terms:
1. Innovate to reduce the costs in real terms of building and maintaining roads. We often make the error of thinking in a static way about government costs for services. In competitive industries, companies are forced to become ever-more efficient, as consumers will only grudgingly pay higher prices.
2. Where innovation and competitive pressure fail to reduce the real cost of these products and services, raise the tax across the board to make up the required revenue. Of course, this has the added effect of making it marginally more worthwhile to buy a more efficient vehicle, thus increasing the overall efficiency of the vehicle fleet in the United States. On the whole, that's probably a good thing.
To me, the worst solution is to provide a mechanism that makes it easier for the government to collect more revenue more readily, with less transparency, and in a way that creates another government enforcement mechanism similar in concept to what is needed to collect the individual income tax.
sitetest
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.