Motorists will see Utah’s gas tax increase, thanks to an 11th-hour compromise between the Utah House and Senate.
Lawmakers have borrowed from education and universities for years to cover road and bridge repairs. They agreed to end that practice by fixing the 24.5-cent gas tax.
“That will help stop this bleeding of education money towards transportation,” Senate President Wayne Niederhauser told reporters.
But the House and the Senate disagreed on the best solution until minutes before 2015 General Session concluded.
In the end, they settled on a new formula: hiking the tax by 5-cents-a-gallon next year. House Bill 362 also limits future increases to 40 cents per gallon.
Republican Rep. Johnny Anderson called it a “generational” step.
“I realize this requires dedicated public servants to cast a courageous vote,” he said in a final pitch to fellow House members. “But our children and our grandchildren will thank us for our nerve and foresight. I encourage you to support this grand compromise.”
Lawmakers also gave counties the option of adopting a local sales tax for transportation.
Billy Hesterman, vice president of the Utah Taxpayers Association, criticized lawmakers for not using some of this year’s $740 million surplus instead of raising taxes.
“They should do it with the money taxpayers have already given them,” he said, “instead of going back to them and saying we need more.”
The new tax is expected to raise about $54 million the first year.
