Could a Gas Tax Hike Be Coming in Wisconsin?

Date: August 30, 2016 Last Edit: August 31, 2016

Legislators are split about how to fund $1 billion transportation budget gap.

Could a Gas Tax Hike Be Coming in Wisconsin?

Wisconsin’s transportation fund
faces an almost $1 billion shortage over two years, and lawmakers are divided
about how to deal with the problem. Options up for debate include cutting
projects and raising the gas tax or registration fees.

Gov. Scott Walker is opposed to
raising the gas tax or registration fees unless tax relief is made in other
areas of the budget. And among Republicans, who control the Legislature, some
agree with the governor, while others say it’s time to raise revenue to deal
with the state’s infrastructure problems and that a gas tax is the best option
because everyone pays it, including visitors to the state.

The last budget also didn’t have enough
money for all of the Department of Transportation road projects, despite $850
million in borrowing, and it also rejected recommendations for increasing the
gas tax by 5 cents per gallon, raising other transportation fees, and using a
mileage-based vehicle registration system. As a result, many plans were
delayed.

The next Department of
Transportation budget is due Sept. 15 and, without increased taxes or fees, is
likely to include expansion and upkeep on only the most-traveled highways in
the state.

Related Content: Small Business News | Economy | Taxes | Wisconsin

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