Wisconsin Gov. Wants Oil Tax to Fund Transportation Needs

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Wisconsin Gov. Jim Doyle (D) has proposed a new tax on oil companies to help raise needed funds for the state’s transportation projects, the Associated Press reported Tuesday.Under Doyle’s plan, oil companies would be taxed about $1.50 per barrel of oil sold in the state and be prohibited from passing costs to consumers, AP said.The tax would be levied when companies transfer oil between one another or between subsidiaries, or at the point where fuel exits the pipeline for distribution, the governor's office told AP.The fees would not apply to 100% biodiesel or to the ethanol portion of E85, Doyle said. In addition, oil companies would be able to deduct the payments from their federal taxes as a cost of doing business, AP reported.To supplement the more than $270 million that Doyle expects his plan to bring in over two years, Wisconsin’s vehicle registration fees would also be increased, AP said. While Doyle did not specify the amount by which registration fees might be upped, he had previously said he would support a $10 hike. Registering a car in Wisconsin currently costs $55, AP reported.The new tax and the increased vehicle registration fees are part of the two-year budget plan that Doyle will present to the Wisconsin legislature today, AP said.