GAS TAX

UPDATE

May 19, 2009. The Massachusetts Senate voted down two amendments to the budget that would increase the Gas Tax, a 12-cent increase sposored  by Senator Cynthia Stone Creem (Tally Sheet: 30-9), and a 19-cent increase proposed by Senator Anthony Petruccelli (Tally Sheet: 34-6).

March 3, 2009.  Massachusetts business groups endorsed a 25-cent increase in the state gas tax, a more aggressive hike than Governor Deval Patrick's 19-cent request, saying that the state needs to move even faster to fix its ailing network of roads and bridges to encourage a strong business climate. A 25-cent increase would generate about $650 million a year in new tax revenues for the state."The political stakes are high, but the leadership here is necessary," said Paul Guzzi, president and CEO of the Greater Boston Chamber of Commerce. [Boston Globe]

February 23, 2009. [Governor Patrick] released his You Move Massachusetts Forward website. In addidion to the proposed distribution of the 19-cent gas tax hike, the site includes information on planned reforms in Massachusetts Transportation organizations, with a goal to: "Reform Big-Dig Culture, Rebuilds Trust and Transparency to Help Secure the Commonwealth's Economic Future" [You Move Massachusetts]

February 11, 2009. [Governor Patrick] said Tuesday afternoon that he was uncertain of the size of any hike. He said a comprehensive transportation realignment must be in place by April to obviate a scheduled hike in tolls levied by the Mass Turnpike Authority, and said the administration was “maybe a week away” from circulating its blueprint. [State House News Service]

February 10, 2009. Administration sources refused to speak on the record yesterday or to make any top officials available for interviews, including Transportation Secretary James Aloisi. The Associated Press reported the contents of a draft proposal that included a 27-cent per gallon increase. Two administration officials later said that was only one of many options for an increase that range from 5 cents to 29 cents. [Boston.com]

January 13, 2009. Legislation is in the works that would set the state gas tax at 50 cents per gallon, up from the current 21 cents a gallon, according to Rep. David Linsky (D-Natick) ...The bill would earmark revenue from 11 cents of the gas tax to the turnpike authority [and] would ensure stable funding sources for the MBTA, regional transit authorities, local road and bridge projects and the state highway department... [Michael Norton, State House News Service]

January 13, 2008. Governor Deval Patrick said yesterday that raising the gas tax could be a "serious alternative" to increasing tolls on the Massachusetts Turnpike and Boston Harbor Tunnels, marking another step in the governor's developing views on the topic. [Boston.com]

BACKGROUND

The motor fuel tax in Massachusetts was adopted in 1929 and currently stands at 21 cents a gallon. The gas tax was last increased in 1990; a one-cent increase would create about $3.5 million in new revenue per year. Currently, the gas tax in Massachusetts must be dedicated to state transportation infrastructure costs.

Fiscal year 2005. Massachusetts collected 2.4 percent of state and local taxes from motor fuels taxes, including the gasoline tax. This represents about 0.25 percent of personal income. Only three other states collect less in gas taxes. People in Montana pay the most—7.3 percent of personal income—and those in New York pay the least at 0.07 percent of personal income.

October 2006. The Massachusetts Transportation Finance Commission leaks deliberation over a possible 9 cent gas tax increase. Patrick rules out gas and toll hikes if elected. [State House News Service]

September 2007. The Transportation Finance Commission, appointed by the Legislature in 2004, predicted that the state's transportation agencies would face a deficit of as much as $19 billion over 20 years. This estimate assumes the following:

  1. No costs would be cut.
  2. No additional revenues would be created.
  3. No infrastructure improvements would occur during the 20-year timeframe.

The commission recommended a gas tax increase of 11.5 cents per gallon, among several other cost-cutting and revenue-creating recommendations, to help balance the expected structural deficit. It also recommended that future increases in the gas tax should automatically be tied to the rate of inflation, which could generate an additional $10.5 billion over 20 years.

A gas tax is now being considered by the Legislature as part of an overall strategy to minimize the state structural deficit of approximately $1.3 billion.

For more information, see The State House News Service's full timeline on the Gas Tax - October 9, 2006 through February 10, 2009.

SAMPLE ARGUMENTS

SUPPORTING

  • A gas tax will provide urgently needed revenue to maintain and expand a safe and efficient network of public transportation services, highways and bridges.
  • By increasing the cost of gas, fewer miles will be driven and harmful carbon emissions will be reduced.

For more information see: 

Conservation Law Foundation 

OPPOSING

  • As with any tax on every-day consumer goods, this tax disproportionately affects people who have low incomes.
  • The cost of housing, health care and food are also increasing rapidly, people simply can not afford to pay even more for gas as well.

For more information see: 

Citizens for Limited Taxation

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