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Could some taxes and fees be on the rise in Pennsylvania?

A Pennsylvania state lawmaker is pushing to get something done sooner rather than later to address the state’s transportation funding crisis. Officials in the Keystone State have been scrambling for funding options since early this year when the federal government denied a proposal to charge tolls on Interstate 80.

In hope of quick action, Rep. Dwight Evans, D-Philadelphia, the Appropriations Committee chairman, has introduced a $1.3-billion-a-year transportation funding plan. The bill calls for levying an 8 percent oil company profits tax; increasing the oil franchise tax on fuel by 6.5 cents; and increasing about 60 driver’s license, registration and vehicle fees.

Gov. Ed Rendell pushed out a similar proposal a month ago when he called on lawmakers to address the issue now and avoid waiting until a new governor is elected this fall. His plan doesn’t include the oil franchise tax. The governor said more than $3 billion annually is needed to meet the existing needs for repairs and improvements to roads, bridges and transit systems.

Barbara Fellencer, communications director for the House Appropriations Committee, said that lawmakers need to give strong consideration to increasing fees. She noted that many fees have remained unchanged since the mid-1970s.

“Some of those fees should be increased. There are very few products out there that haven’t had some sort of increase,” Fellencer told Land Line.

She also said there is no provision in the bill – SSHB8 – that would assure the proposed oil franchise tax, which is applied at the wholesale price, would not affect the price at the pump.

“We can’t guarantee that won’t happen. There’s no provision to prevent that at this point.”

Supporters, including the governor, say that Pennsylvania residents support higher taxes to make sure the state’s transportation system doesn’t continue to erode.

OOIDA Director of Legislative Affairs Mike Joyce said that lawmakers need to do a better job of assuring taxpayers they aren’t squandering revenues already available before they go digging into peoples’ pockets once again.

“It is incumbent upon elected officials to re-establish trust with taxpayers,” Joyce said. The first step, he said, is to make sure revenues, such as fuel taxes, are being used the way they were originally intended.

“Policymakers and lawmakers have too often broken promises. That is a big reason why they have not been able to win the favor of voters to increase fuel taxes over the years.”

Republicans, who control the Senate, say there isn’t enough time to adequately address the issue before Election Day. GOP leaders have indicated that any long-term solutions to fund transportation projects are likely to be delayed until a new governor takes office in January.

Fellencer said lawmakers cannot afford to wait to solve this issue.

“If we wait until next year we could very well miss out on adding any new money for the 2011 construction season. Odds are we won’t get to any substantive legislation before May or June and we will be in the middle of the budget by then,” she said.

To view other legislative activities of interest for Pennsylvania, click here .

Editor’s Note: Please share your thoughts with us about the legislation included in this story. Comments may be sent to [email protected].

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