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Eye On Boise

Mon., Jan. 12, 2009, 2:28 p.m.

Where he’d get the money

Idaho's governor is proposing a 2-cent per gallon increase in the state's fuel tax each year for five years, resulting in a 10-cent increase in the tax in five years to 35 cents per gallon. The first year, that'd bring in about $17.6 million. After five years, it'd generate $88 million more a year for transportation. He's also calling for $15 million from increased vehicle registration fees the first year, and $51 million a year after five years. A 6 percent excise tax on car rentals, eliminating the ethanol exemption from the fuel tax, and a gradual shift of fuel tax revenues that now go to the Idaho State Police back to the highway fund round out the revenue proposal, which Otter estimated will raise $174 million a year more for transportation over the next five years. He'd also proposing a study of how much sales tax is generated from auto sales, tires and auto parts. "While I'm not advocating a shift in those revenues today, it is important for us to compile the data so that we can make informed decisions down the road," Otter said. Idaho currently spends no general tax money for transportation, relying mainly on fuel tax and vehicle registration fees along with federal funds.




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Eye On Boise

Short takes and breaking news from the Idaho Legislature and the state capital.