News
June 24, 2008
Gas tax hike would be delayed
W.Va. drivers could save $50 to $60 next year

Legislators are expected to approve a freeze on an increase of 5 to 7 cents per gallon in the state gas tax, beginning Jan. 1.

Gov. Joe Manchin announced Monday that the gas tax freeze will be on the agenda for a special session set to begin this afternoon.

Manchin said the freeze will amount to $50 to $60 in savings next year for most households.

"Every little bit helps," Manchin said. "Every penny helps."

In order to make up for the lost gas tax revenue, Manchin will request a transfer of $40 million of surplus revenue from this fiscal year, which ends June 30, to the state Road Fund.

"It's one thing to say we're not going to raise the taxes ... but the responsible thing is to also maintain the highways," he said.

Under current law, the state gas tax has two parts: A base rate of 20.5 cents a gallon, and an additional tax equal to 5 percent of the average wholesale cost of a gallon of gasoline for the previous July through October.

Currently, that part of the tax is 11.7 cents a gallon, but wholesale gas prices are running more than $1 a gallon higher than in 2007, projecting to at least a 5-cent a gallon increase.

If approved by the Legislature, it will mark the second time that the Manchin administration has imposed a freeze on the wholesale gas tax.

In 2006, Manchin blocked what would have been a 3.4-cent a gallon increase in the tax. However, that freeze cost the Road Fund more than $52 million in lost revenue, forcing the Division of Highways to postpone or cancel numerous planned road maintenance projects.

On Monday, state Transportation Secretary Paul Mattox said he was confident the proposed $40 million infusion of surplus revenue will help assure that the division won't have to defer planned road projects in 2009.

Although the session is set to begin at 5 p.m. today, the agenda for what is anticipated to be a two-day session isn't expected to be finalized until this morning.

One issue still to be resolved, Manchin said, is a bill proposed by the House and Senate Judiciary Committee chairs to require disclosure of sources of significant amounts of money for independent election advocacy campaigns.

Advertiser
Report a violation or offensive comment.
[X] Close
to report abuse.
Posted By: James (5:31pm 06-24-2008)
Report Abuse


They have only postponed the tax increase. It will be put in later. Let's see the states logic, we gave you 5 to 7 cents that was yours to begin with back to you because we didn't take it in the first place like we could have. The food tax is another story, why did we let them ever put that back on?

Posted By: kelly (12:36am 06-24-2008)
Report Abuse


WHOA! Drive down 119 and then listen to this bull! Give me a break..

Posted By: TonyHawkFan39 (9:11am 06-24-2008)
Report Abuse


I'm sick and tired of hearing how the money from the gas tax paves roads and fixes bridges. That money can come from any part of the state budget. This "gas tax gimmick" is outrageous. It is the equivalent of saying the average West Virginia family saves $1,000 a year because the Governor didn't raise the food tax. Only Phil Kabler believes this is a "savings."

Posted By: FormerCapitolinsider (9:04am 06-24-2008)
Report Abuse


ARE YOU KIDDING ME!?!?! They(MOJO) are going to save us money by not increasing a current tax. There is absolutely no way that this can honestly make sense to these guys. BTW The increase was instituted by MOJO 2 years ago, it is not just automatic.

It's easy to follow the top stories with home delivery of The Charleston Gazette.

Click here to order home delivery.

Advertiser
Advertiser