State legislatures consider fuel tax increase as highway funding option

| April 16, 2013

New Hampshire, Maryland and Massachusetts are all eying potential increases in tax on fuel as a means to increase revenue and support transportation projects in the states.

New Hampshire’s House passed a piece of legislation recently that would bump fuel taxes up 12 cents per gallon, which would be implemented over a six-year time period for diesel and a three-year period for gas.

The Massachusetts House passed a similar bill to raise the tax on gasoline 3 cents per gallon — a bill also debated last week in the state’s Senate. Massachusetts Gov. Deval Patrick, however, will more than likely veto either bill if they make it out of both chambers.

Lastly, Maryland Gov. Martin O’Malley is expected to sign a transportation bill that would increase sales tax on motor fuels starting at 1 percent this July. That increase bumps up to 3 percent in July of 2015. The alternative to this bill, however, are automatic increases of 5 percent in 2016.

See Overdrive sister site CCJ‘s report for more on each state’s legislation.