Oklahoma GOP Considering Hiking Gas Tax, Democrats Say
OKLAHOMA CITY — Oklahoma Republicans are considering increasing the state’s gasoline tax by six cents to help fill the state’s looming budget hole, Democrats announced April 26.
House Minority Leader Scott Inman said the hike would mean the average Oklahoma family would pay about $150 more a year to fuel up.
“What makes it all the more appalling is that they refuse to raise gas taxes on oil and gas companies, but they want to raise gas taxes on citizens of our state,” said Inman, (D-Del City), as he stood in front of a fuel pump at a gas station down the road from the state Capitol. Vehicles loudly rumbled past.
Oklahoma currently taxes gasoline at 16 cents a gallon, while diesel is taxed at 13 cents. Consumers typically pay an additional 1-cent fee on top of that.
Raising the rate 6 cents would generate an additional $200 million, but that would come at the expense of working families, Inman said, adding his members would oppose a fuel tax hike.
Increasing the fuel tax would require support from both House Republicans and Democrats.
House Speaker Charles McCall, (R-Atoka), said in a statement his caucus has been discussing the motor fuel and diesel tax, just as there have been discussions looking at improved efficiencies in agency spending and eliminating various tax credits, exemptions and incentives.
“We wouldn’t be doing our job if we weren’t having substantive discussion on all options that would help us craft a responsible budget for the people of Oklahoma,” he said.
Lawmakers are currently grappling with how to fill an $878 million shortfall.
“With new issues and speculation occurring daily at the Capitol — and nothing official regarding a possible fuel tax increase — [our group] will continue to monitor the issue as it develops through the remainder of the legislative session,” said John Cox, communications director with the advocacy group Transportation Revenues Used Strictly for Transportation, which seeks to restore transportation funding.
In her State-of-the-State address earlier this year, Republican Gov. Mary Fallin called on lawmakers to increase the state’s fuel taxes.
Oklahoma currently ranks 48th in its diesel tax rate and 49th in its gasoline tax, she said. She proposed increasing both taxes to 24 cents a gallon, which she said would be closer to the regional average.
The state last increased its fuel taxes nearly three decades ago.
