Login
Keep the road fund healthy PDF Print E-mail
Once again, there is talk about stopping the annual increase in Maine’s gas tax.  It happens every year in the summer, just when gas prices are at their seasonal highs. 

Instead of rehashing the same old tired arguments about the gas tax, whether it’s progressive or regressive, or who it hurts most, why doesn’t the Legislature sit down and come up with a new, better way to finance road work?

Legislators are right that gasoline prices, which are up more than $1 since last year, are hurting Maine residents. The eight-tenths of a cent increase in the state’s motor fuel taxes that went into effect on July 1 is only a tiny piece of that problem, however.  The real reason gas prices keep going up are supply and demand, speculation, a risk premium since we get much of our oil from places in the world where violence is likely, and the falling dollar.  The less-than-a-penny increase in the gas tax isn’t doing much to keep us home.

Generously rounding up, the 1-cent per gallon tax increase will add less than a quarter to the cost of filling up the tank of an SUV (less for a smaller car with a smaller gas tank). That’s enough for a gumball, but not for tax relief.

Most importantly, the gas tax goes to pay for needed road maintenance in Maine.  Highway projects are funded by federal dollars, bond issues, and the state tax.  About 70% of the highway fund comes from our state tax.

It is one of the ways we can ‘outsource’ our tax burden, too.  When people come to vacation in Maine, they pay a share of the costs of repairing the very roads that get them to their vacation destinations. 

But the state tax has not kept pace with the high costs of maintenance.  This year, there was a shortfall, and if the tax is not increased, that shortfall would increase by about $7 million a year.

Nobody likes the gas tax, but we do get a lot out of it.  Our DOT is very efficient in road repair, rather than road and bridge replacement.  But no matter how efficient they are, the money has to come from somewhere.  Until lawmakers agree, the ‘somewhere’ is our state gas tax.

It may not be popular, but we as a state have to pay to keep our roads in good repair for many reasons, including keeping them well maintained to attract tourism, and safe for residents, truckers, and visitors alike. 

 
< Prev   Next >