Utah Tax Hike Could Fund Roads

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SALT LAKE CITY (AP) — With Utah residents paying less for gasoline than they have in a decade, some lawmakers think it's a fine time to increase the state's per-gallon gas tax.

Republicans will begin to get serious about solving their road-funding woes this week, and a 2-cent increase in the gas tax is likely to be considered.

The Legislature increased the tax by 5 cents during the 1997 session to finance the $2.83 billion Centennial Highway Fund, the 10-year, statewide road-building program. Its centerpiece — I-15 reconstruction in Salt Lake County — is rolling right along.

But that dramatic tax hop wasn't enough. Lawmakers now know the fund will be about $500 million short at the end of its life in 2007 unless they do something now.

The suggested 2-cent hike would raise the state's share of the gas tax from 24.5 cents to 26.5 cents. That would vault Utah past six other states and give it the fourth-highest gasoline tax in the country behind Connecticut (36 cents), Rhode Island (29 cents) and

ontana (27 cents).

It also would generate about $12 million a year, $9 million of which could go into the Centennial Fund. The rest would go to cities, towns and counties.

But Senate President Lane Beattie said he doesn't think lawmakers will raise the gas tax this year. House Speaker Marty Stephens said he would rather prefer to dip into $223 million in anticipated new revenues than raise the gasoline or sales tax to finance the Centennial Fund.

The Utah Motor Transport Association, which represents the trucking industry, is keeping a watch on the possible tax adjustment. Director David Creer said the association, which did not oppose the 1997 tax hike, just wants any tax increase to be fair.

Creer added that because haulers would pay more for fuel, freight costs might increase and be passed on in the form of more expensive consumer goods.