News
March 26, 2008
60 percent of road fund comes from gasoline tax
32.2 cents a gallon provides state millions for road maintenance

At 32.2 cents a gallon, West Virginia's gasoline excise tax adds several dollars to the cost of a fill-up - but also provides nearly 60 percent of the state's share of state Road Fund dollars.

"If we would have a loss of that money, we couldn't pave as many miles of roads, and we couldn't fix potholes as quickly," Transportation Secretary Paul Mattox said of the often-raised idea of cutting the gas tax.

For the 2008-09 budget, the gas tax is projected to bring in  $380 million - by far the largest source of state funding for highway construction and repair. All other state vehicle taxes, registration and fees will account for less than $258 million.

Federal highway funds then will bring in an additional $490 million, upping the 2008-09 Road Fund budget to $1.2 billion.

While nearly three-quarters of that money will go for road construction and renovation (about $260 million goes for maintenance, including snow removal, litter removal, and patching and paving), Mattox said that amount pales in comparison to demands for new road construction.

The Division of Highways maintains a priority list of new highway construction projects, but with a total price tag in excess of $25 billion, Mattox said most of the projects on the list will never be built.

While drivers grumble about fuel costs, Mattox said even a small reduction in the fuel tax can have devastating impact on the Road Fund, as the division saw first-hand in 2006.

In the fall of 2005, Gov. Joe Manchin imposed a freeze on what would have been a 3.8-cent increase in the wholesale portion of the gas tax.

(The wholesale portion of the gas tax, currently 11.7 cents a gallon, adjusts annually based on the average wholesale price of gasoline in the previous year.)

For consumers, the freeze amounted to less than $1 savings per fill-up, but cost the Road Fund $52.8 million in lost tax collections, as well as roughly $40 million in federal matching funds.

According to the International Fuel Tax Association, West Virginia's tax is the third highest among states, behind Washington state (currently 36 cents, but going up to 37.5 cents on July 1) and Wisconsin (32.9 cents).

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