Vermont Gov. Signs Fuel-Tax Increase

Vermont Gov. Peter Shumlin (D) signed a transportation budget bill Monday that will boost the state’s current diesel fuel tax by 2 cents beginning July 1, and the gasoline tax by 5.9 cents a gallon, effective Wednesday.

The House and Senate gave final approval to a compromise bill last week that the governor signed unusually quickly due to a May 1 gas-tax increase deadline, the Associated Press reported.

Shumlin and legislative leaders said higher fuel taxes were needed to match $56 million in federal funds targeted for road and bridge repairs.

Earlier versions of the legislation had called for raising the diesel tax by as much as 4 cents over the next two years.