[Vision2020] Otter Has Plan to Raise Millions for Roads

Wed Feb 27 14:13:09 PST 2008

...or no sales tax?

Tom Ivie <the_ivies3 at yahoo.com> wrote: ...and how many of those "surrounding states" with higher vehicle registration rates have a state income tax?

Tom Hansen <thansen at moscow.com> wrote:           st1\:*{behavior:url(#default#ieooui) }           From today’s (February 26, 2008) Spokesman Review –

  “Proposal includes increasing vehicle registration fee to  $150”

  Remember the sole-parent, hard-working Idaho waiter(ress) example I presented earlier?  Remember how (s)he drops off his/her child at a day care center (that does not require background investigations of its employees), working as a waiter(ress) for $3.50 an hour (since Idaho allows employers to include anticipated tips as part of their employee’s income)?  Well . . . that same waiter(ress) must pay $150 minimum each year to keep his/her car on the road so shat (s)he can get to work.

  If Governor Otter truly does wish to stay in step with local states, I suggest he increase minimum wage to $8.00 an hour and start taxing services (i.e. attorneys), instead of dumping the financial burden on those who so sorely cannot afford it.

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

  Otter has plan to raise millions for roads 
  Proposal includes increasing vehicle registration fee to $150

  John Miller 
  Associated Press
  February 27, 2008

  BOISE –  Gov. Butch Otter is touting fee increases he says will help raise an additional $202 million annually by 2011 to maintain Idaho's roads and bridges, including a plan for substantially higher registration fees for cars.

  In addition to those hikes, proposals discussed at a meeting Tuesday of the House and Senate transportation committees to increase money for roads also include a 4 percent rental car tax and increasing fees on commercial truckers.

  The Idaho Transportation Department estimates it will have an annual $200 million highway funding shortfall in coming years. If Idaho doesn't take action to bridge the gap, officials say the only other alternative is to develop a strategic withdrawal from maintaining some roads so the state has enough cash left over for its most-important thoroughfares.

  "There are plenty of projects we could do, if we had the money to do them," Darrell Manning, the chairman of the Idaho Transportation Board, told lawmakers. "We have procrastinated too long."

  According to Otter's proposals, he's pushing a 4 percent tax on rental cars that would raise about $1.3 million annually.

  Otter also wants to gradually boost fees on commercial truckers, raising $25 million in the 12 months starting July 1 and increasing the proceeds to $50 million by 2011. About $22 million would come from light trucks, with the rest from larger tractor trailers. Otter hasn't proposed specific legislation; instead he's working with lawmakers and the trucking industry to come up with a package that accomplishes his goals.

  "We wanted to find some middle ground," said Sen. Tim Corder, R-Mountain Home and a trucking company owner who has been helping draft proposals for his industry.

  By far the largest piece of Otter's package to increase roads revenue calls for boosting registration fees for personal vehicles to a flat rate of $150 annually, from between $24 and $48 now, depending on a car's model year. After the changes, Idaho would rank just 17th among states in registration costs, said Clete Edmunson, Otter's transportation policy adviser.

  "Even by increasing revenue up to $150, it's still fair and it's still equitable with the surrounding states," Edmunson said.

  Some lawmakers already indicated opposition to trying to raise the lion's share of new revenue by increasing registration fees for cars.

  Rep. Phylis King, D-Boise, said it made little sense that people who drive their cars very  little should pay the same as those who use their cars every day for long distances.

  "My neighbor who is 90 years old drives very little," King said. "So why not raise your gas tax? I think for seniors, it would be fairer to charge per mile."

  Edmunson countered that Otter is philosophically opposed to raising the state's 25-cent-a-gallon gas tax, which hasn't been increased since 1996. Transportation Department officials also contend revenue from Idaho's gas tax is stagnating and can't be counted on in years to come, especially as cars improve their gas mileage.

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

  Details of Otter's plan 

  Registration fees: The current state registration fee – excluding county charges  – would be increased to $150, from $24 to $48 now, depending on the car's model year. The plan would raise $134 million more in revenue by fiscal year 2011, according to the governor's estimates.

  Rental cars: Rental cars would be taxed at 4 percent; the resulting $1.3 million in proceeds would be deposited directly in the State Highway Account.

  Truckers: Gov. Otter, lawmakers and the trucking industry are working on a plan that would raise $25 million in fiscal year 2009 from commercial trucks, with revenue  rising to $50 million by 2011. About $22 million would come from fees on light trucks, with the rest coming from larger tractor-trailers.

  ISP shift: Otter wants to shift $16.7 million in funding for the Idaho State Police that now comes from transportation-related fees. Instead, the money would be taken from the state general fund. That would free up money for road work. The Joint Finance-Appropriations budget writing committee has already expressed skepticism over the shift, recommending against it.

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

  Seeya round town, Moscow.

  Tom Hansen
  Moscow, Idaho

            "If not us, who?
 If not now, when?"

 - Unknown

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