The state gas tax is not getting the popular vote heading into the presidential election. In Alaska, Gov. Sarah Palin signed a bill that suspends the state’s motor-fuel tax for a year to help residents cope with high energy prices.
The suspension will cost the state an estimated $40 million, according to the Bureau of National Affairs. Palin, however, said the state could afford the one-year hold because high oil prices have created a large budget surplus. The bill’s key provision provides a $1,200 energy rebate to all Alaskans this fall in addition to their annual dividend from the Alaska Permanent Fund.
Alaska’s 8-cent-per-gallon fuel tax is the lowest in the nation, but gasoline prices, averaging $4.58 per gal, are the highest.
Kansas Gov. Kathleen Sebelius recently announced the creation of a state transportation planning task force and said she will not support an increase in the state’s motor-fuel tax to pay for future transportation improvements.
Due to the fact that gas prices have reached record highs, Sebelius said she simply could not support any increase in motor-fuel taxes, and asked the task force to find “other approaches” for transportation financing.
Louisiana has collected $50 million less in gas taxes during the past two years while construction costs have soared, forcing the indefinite delay of a planned highway in St. Tammany Parish and a new bridge over the Industrial Canal.
