State Leaders Dumbfounded Why Gas Tax Revenue Dropping

You may have seen the new WA Transportation Commission headlines that over the next six years, WA state will have a $353 million dollar transportation shortfall. Of that, 61 percent or about $217 is from gas taxes (at the pump). And, they noted vehicle registrations are down too. That accounts for $68 million of the revenue slide.

State Officials can tell us the numbers, but none of them address the "why" part of this equation.

State Officials Appear Dumbfounded as Gas Tax Revenue Keeps Falling Year after Year.

During a hearing meeting this week WTC Officials tried to attribute some of the decline in fuel sales to the US-Iran Conflict. Is that it? Nope.

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That only began a month or so ago. The gas tax has been sliding long before that

Is it otherwise due to other global instability? Nope. Geopolitical issues always make oil prices spike, then they self-correct.

The Gas Tax Has been Raised Twice in Last 9 Years, and It Was Not Small

We already had some of the highest gas taxes in the US, and between 2016 and today, the tax has gone up 11.9 (basically 12) cents. For a typical 15 gallon fill-up for an average vehicle, that's at least an extra $1.08.

The Climate Commitment Act Has Added to the Crunch

Future 42 is a conservative-leaning think tank and advocacy group who pushes for free market and business laws that promote economic growth. They've been tracking fuel prices for sometime with their Facebook Gas Price Friday Feature.

Want to know how much the gas tax and Climate Commitment Act contribute to our gas prices? March 20th, they posted this information:

"Gasoline

Washington Average: $5.14

National Average: $3.88

Difference: $1.26

-------------------------------------------

WA State Taxes

Gas Tax: $0.554

Climate Tax: $0.52

Total gas taxes: $1.07" (italics and bold added for emphasis)

The Climate Commitment Act, which is a business and manufacturer pollution tax, has raked in billions of dollars, while not contributing any meaningful funds toward fighting 'climate change.'

The Drop in Gas Tax and Registration Revenue Didn't Start Yesterday

State officials can't seem to grasp that some of their own emission standards, which until last year copied California's, resulted in increasingly efficient vehicles. Even many trucks get 23-25 MPH on the highway. Higher miles, lower fuel use. (since then the Feds have struck down WA state and 11 other states copying CA Standards).

Because of higher fuel prices, WA drivers have learned to drive less, and consolidate trips. They accomplish more tasks in fewer trips, lowering gas use, therefore less gas tax revenue.

getty

Because of taxes, fuel costs, business costs, energy costs and more, WA drivers are buying fewer vehicles. Because of economic conditions in WA, we're hanging on to our vehicles a lot longer. Therefore, less vehicle registration funds for the state.

State government and its leaders need to turn on the lightbulb and realize this situation was created by their own doing, and raising gas taxes again won't solve it. It didn't before, it won't again. Learn to spend wisely what you have.

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Source: Here’s the REAL Reasons WA State Gas Tax Revenue Keeps Falling, and Falling, And…

Categories: Business, Tri-Cities News