Is a State Gas Tax Increase Coming…and Soon? [VIDEO]
State Representative Jack McFarland talks about his proposed legislation, a bill that would, among other things, increase Louisiana's gas tax 22 cents over 12 years.
His bill, McFarland explains, starts by shifting $1.5 billion in DOTD administrative costs to roads and bridges over the life of the bill. In addition, it would draw down up to $7.5 billion more in federal tax dollars for infrastructure, saving taxpayers money.
And what of the reorganization of DOTD monies? McFarland says it will encourage innovative operations and incentivize performance-based budgeting. Even without the gas tax bump, he says, $120 million of our current pump price away from administrative costs and shifts the money to be spent on on roads and bridges.
McFarland's bill, referred to as GRIT (Government Reform in Transportation Act), will, on passage, increase the state's gas tax by a dime, then by another by two cents a gallon every other year through 2033. Currently, McFarland says, people in 43 other states pay more in taxes at the pump than Louisiana. This legislation, he adds, would make the state eligible for bring $45 billion in federal funding and still keep the gas tax below national average.