11¢ Gas Tax Hike Promoted in Kansas; Measure Would Raise Rates on Other Fuels, Too
Kansas has not adjusted its motor fuels tax in more than a decade, and it’s a target for a hike as the state looks for revenue.
House Bill 2382 would increase tax on a gallon of gas by 11 cents, taking it from 24 cents to 35 cents. The legislation would raise rates on other fuels, and a gallon of diesel would carry a 37-cent tax.
The bill has backers, because most of the money would go to the State Highway Fund. Cities and counties would get portions, too. Proponents say the bonus in this tax hike is that the money would be constitutionally protected and not vulnerable to be swept into the state’s general fund.
Salina Area Chamber of Commerce President Don Weiser wrote a letter of support to the House Taxation Committee, and so did Manhattan Assistant City Manager Kiel Mangus. The Kansas Association of Contractors is lobbying for the bill, and Marynell Popst, vice president of Reece Construction Co., with offices in Salina and Scandia, testified before House Taxation on March 23.
Reece Construction is hesitant to purchase new equipment or hire new crews because it is uncertain there will be enough jobs in the next few years to justify the expense, she said. It is pursuing contracts in Oklahoma and Nebraska because it doesn’t want to lay off crews.
“I like numbers, so let’s run them,” Popst said.
If the average driver drives 15,000 miles a year and the car gets 20 miles per gallon, the driver will spend an additional $82 per year if the 11-cent tax is implemented, she calculated. “This is a moderate and reasonable increase,” she said, and less than the cost of replacing a windshield or a flat tire from driving on poorly maintained roads, she said.
Opponents include the trucking industry’s Kansas Motor Carriers Association, agribusiness, the Kansas Chamber of Commerce, taxpayer watchdog groups and convenience stores.
Increasing the state income tax and the motor fuels tax would be a “double whammy,” said the Motor Carriers Association’s executive director, Tom Whitaker. A lot of companies in the association are limited liability corporations that have been exempt from income tax.
Jeff Glendening, executive director for Americans for Prosperity-Kansas, said if the 11-cent hike passes, Kansas will have a motor fuels tax 102 percent higher than Missouri’s and 106 percent higher than Oklahoma’s.
“I would hate to see the state become a self-inflicted loser,” said Rep. Ken Corbet, (R-Topeka).
Ideas of a three-cent or a five-cent increase don’t win over Thomas Palace, representing petroleum marketers and convenience stores. He said they don’t support those smaller hikes, either.
