Rep. Wayne Harper, R-West Jordan, told members of the Legislature's Transportation Interim Committee that while people are driving more than they used to, the fuel tax has remained the same since 1997, leaving potholes in highway revenues.
"Motor fuel is a very stable tax, which is a good tax," Harper told the panel. "However, with the increased costs, [and] the increases in fuel efficiency in vehicles, it is not now an adequate tax."
Utahns are logging 192 percent more miles traveled than in 1976. The population has doubled in that time. In part because of vehicle fuel-economy gains, the number of gallons of gas sold has increased 64 percent, Harper said. Even so, when adjusted for inflation, the state fuel tax isn't bringing in any more money than it did 10 years ago.
The state now dedicates 17 percent of its sales taxes to transportation. This year, lawmakers passed a record-high transportation budget. Still, Utah Department of Transportation officials say billions more are needed to take care of population growth and to maintain highways.
Harper's presentation included several revenue-boosting ideas: a vehicle-mileage fee that would be added to or substitute for current fuel taxes; a supplementary sales tax; adjusting taxes for inflation; or allowing local governments to impose a tax.
Rep. John Dougall, House chairman of the Revenue and Taxation Committee, also is pushing for a gas-tax overhaul.
Each one of the concepts has its drawbacks, lawmakers agreed. For example, mileage-based fees would affect rural residents unfairly, said Rep. Ben Ferry, R-Corinne.
Sen. Ed Mayne said that counties have shown they are willing to increase sales tax for transit, an option the West Valley City Democrat said his constituents prefer because they don't feel them as much as fuel taxes.
But that attitude only contributes to a growing dependence on General Fund taxes to pay for transportation at the expense of education and other state needs, said Utah Taxpayer Association representative Royce Van Tassell.
Because consumers don't automatically make the connection between buying sunglasses and paying for transportation, they see no incentive to change their driving habits to reduce congestion, which is a prime reason for highway construction.
Harper told the committee he would pare the options before crafting a bill to get some kind of fuel increase during the 2008 legislative session.
This year, Harper tried unsuccessfully to lower the state's flat fuel tax from 24.5 cents per gallon to 15 cents per gallon. An "indexed" tax based on the wholesale cost of fuel ultimately would have incrementally raised the fuel tax to 28 cents per gallon.
