Mass. Weighs Tax Options as Part of Transportation Funding Plans

Massachusetts would have to increase its gasoline and diesel tax to 51 cents from 21 cents a gallon in order to erase long-standing transportation deficits and meet annual transit and highway needs, according to a report released Monday by the state’s Department of Transportation.

Other options for generating the $1 billion needed for each of the coming 10 years are to increase the state sales tax to 7.75% from the current 6.25% or the raising the income tax from to 5.66% from 5.25%, the report said.

“It will take a total of $1.02 billion in new revenue annually both to properly operate the system we have today and to make the modest, strategic expansions we should have to accelerate economic growth,” Gov. Deval Patrick (D) said as he released the report.

MassDOT did not advocate for any one of the tax options presented in its report, which also includes options for increasing fees for car and truck registrations. But Patrick said he would include his preference in his budget, which he is scheduled to send to the legislature next week.