The D.C. Council is going the way of neighbors Virginia and Maryland by approving new wholesale sales taxes on gasoline and diesel. In it's budget approved on May 22, the council swapped the current 23.5-cent excise tax for a new 8.3% fuel tax.
Tim Craig writes two articles - before and after the Council of the District of Columbia's vote on Mayor Vincent C. Gray’s $12.1 billion, 2014 budget proposal that includes the tax swap - which D.C. Council Chairman Phil Mendelson described as "revenue-neutral”.
“The motorist should see no change,” Mendelson said. “We are not raising the tax. We are changing the implementation of the tax.”
The purpose of the swap is "to better insulate city highway funds from market volatility associated with more fuel-efficient vehicles and decreased demand when prices spike," Mendelson (D) said in an interview.
Craig notes that the swap "would shift the onus of paying fuel taxes from consumers to businesses. But fuel distributors would almost certainly pass those costs on to customers."
While wholesale fuel taxes are not new - the idea of using them in lieu of excise (per gallon) taxes is clearly a trend in the Capital Region, begun this year in Virginia - not by Gov. Bob McDonnell whose proposed plan eliminated the 17.5-cent excise tax for a general sales tax increase, but by the legislature that inserted the 3.5% wholesale fuel sales tax while lowering the general sales tax increase. Likewise, in neighboring Maryland, Gov. Martin O'Malley had initially called for reducing the 23.5-cent excise tax by a nickel, indexing it for inflation, and adding a 4% wholesale fuel tax. The legislature nixed the nickel decrease and lowered the wholesale fuel tax.
Outside the Capital Region, Vermont's May 1 gas tax is "a net increase of 5.9 cents per gallon that includes a new 2 percent assessment on the price of gas, while the per-gallon tax decreases by 0.8 cents" as reported here.
Of interest to district residents, "the council is also considering raising Circulator bus fares from $1 to $1.50 for Smartcard users, and $2 for users without the card, to fund a major expansion of the system."
According to The Examiner's transportation staff writer, Liz Essley, the effect of the gas tax swap will be to "ensure that Virginia remains the place to go for Washington-area drivers seeking a cheap fill-up, transportation experts say." One need not be an expert to recognize that 8.3% is greater than 3.5%, though.
Essley writes that "the D.C. Council is expected to vote again on the measure in June."
California also did a revenue-neutral gas tax swap in 2010 as described here - but in reverse of the new trend. It initially eliminated the state sales tax on fuel for an equal increase in the state fuel excise tax that, for arcane reasons, helped the legislature to balance the budget that year.
FULL STORY: D.C. council chairman seeks shift in collecting fuel taxes
The Mall Is Dead — Long Live the Mall
The American shopping mall may be closer to its original vision than ever.
Report: Las Vegas, Houston Top List of Least Affordable Cities
The report assesses the availability of affordable rental units for low-income households.
The Paradox of American Housing
How the tension between housing as an asset and as an essential good keeps the supply inadequate and costs high.
How to Protect Pedestrians With Disabilities
Public agencies don’t track traffic deaths and injuries involving disabled people, leaving a gap in data to guide safety interventions.
Colorado Town Fills Workforce Housing Need With ‘Dorm-Style’ Housing
Median rent in Steamboat Springs is $4,000 per month.
Indian States Give Women Free Bus Passes
The programs are part of an initiative aimed at helping more women join the workforce and improving access to basic needs.
City of Yakima
City of Auburn
Baylands Development Inc.
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Birmingham, Alabama
City of Laramie, Wyoming
Colorado Department of Local Affairs
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.