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Gas tax under fire from Parnell Legislators want other taxes cut, appear reluctant on motor fuels tax

Posted: March 21, 2012 - 12:02am

Legislators are preparing to consider Gov. Sean Parnell’s proposal to suspend the state’s gasoline tax, but there are new indications the tax cut may have difficulty making it through the Legislature.

While Parnell has feuded with the Senate over oil taxes, the gasoline tax may have as much difficulty in the House of Representatives, comments from leaders this week suggested.

“For us to either drop or reduce our 8 cents a gallon tax certainly send a bad message to the federal government,” said House Speaker Mike Chenault, R-Nikiski, otherwise and ally of Parnell on taxes.

Alaska’s gas tax is the lowest in the nation, and the state’s legislators have said that if Alaska doesn’t have a gas tax it would harm their efforts at getting federal transportation dollars for Alaska.

After Parnell made a renewed push for suspension of the tax, Transportation Committee leaders in the House and Senate said they’d give the bills doing that a hearing.

House Transportation Committee Chair Peggy Wilson, R-Wrangell, has scheduled a hearing on the bill for Thursday where the administration can make its case.

Senate Transportation Committee Chair Albert Kookesh, D-Angoon, will likely schedule a hearing late next week, his staff said.

The 8 cents per gallon savings under Parnell’s proposal would be for highway fuel. For marine fuel the savings would be 5 cents per gallon, and for aviation fuel it would be 4.7 cents per gallons.

The Parnell administration disputes the claim that suspending the gas tax would impact funding, telling legislators that Alaska has no dedicated highway fund and the motor fuel proceeds go into the state’s general fund. Suspending the tax would save Alaskans $35-40 million a year, the administration said.

Parnell said the state already invests substantial money in transportation, with a $585 million transportation operating budget, $328 million of which comes from the general fund. Additional money for capital projects is also spent.

Rep. Lance Pruitt, R-Anchorage, said Alaskans would benefit more if the money were spent on the state’s roads.

Do we save Alaskans money at the pump “and them have them drive on roads where their car could get beaten up and it would cost them more to repair it, or do we repair our roads,” Pruitt said.

Rep. Berta Gardner, D-Anchorage, said she doubted that Alaskans would see the benefits from a gas tax reduction.

Under former Gov. Sarah Palin the tax was suspended for a time, and she said drivers didn’t benefit.

“What we found last time it was not passed along to consumers,” she said.

• Contact reporter Pat Forgey at 523-2250 or patrick.forgey@juneauempire.com.

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stgeese
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stgeese 03/21/12 - 08:44 am
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Roads, Railroads and Ferries

Not to be simplistic, but I would rather keep paying the gas tax and be assured that our roads were maintained, our railroad operating, and our ferries were not being targeted for reductions.

Sorry Gov., but I am one who is willing to pay for the services I receive, and am against taking steps that are done just to score points with the voters and oil companies.

fisherwoman44
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fisherwoman44 03/21/12 - 09:08 am
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Rough Cut

Why do your comments always appear as "..." ?

Banditrider
638
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Banditrider 03/21/12 - 09:37 am
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Gas price won't drop

If we eliminate the 8 cent tax today, will our gas at the pumps go down 8 cents? No, they'll stay the same, the 8 cents will just be redirected to suppliers, wholesalers, etc. Keep it in place as it does maintain our infrastructure and keeps jobs going.

jmacinak
397
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jmacinak 03/21/12 - 01:29 pm
0
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If we give up that 8 cents

If we give up that 8 cents that is "dedicated" to fixing/ servicing the Alaska road systems,..we will lose matching federal funds to the tune of millions of road repair and maintenance bucks. Why would we want to send a message that we don`t need a share of those matching allotted federal highway funds? The eight cents state tax per gallon was put in place to begin with so that Alaskans would not have to fight the legislature every year to get road repair bucks! Why does this Governor want to change that formula that has worked well to keep road repairs funded without begging each short fall repair season? Did we lose the federal match? Is that why we would do this foolish thing? Is this just politics? We did this once before folks, and the companies (not the gas stations) took that and the price was back up a week later. They didn`t even thank us. And we burned through the road fund in short order. Burn me twice Governor, shame on me. Why ruin a good program for politics sake.. to prove a point? It`s a false point.

Jo MacNamara
697
Points
Jo MacNamara 03/21/12 - 05:28 pm
3
2

Here's the math...and the "savings"...

Let's assume you fill up your tank twice/month and you have a 15 gallon gas tank on your car.

An $.08/gallon decrease would equate to $1.20 savings at the pump every two weeks. Multiply that times 26 (half of 52 weeks). That's a "savings" of $31.20 over an entire year for highway fuel.

And the numbers are lower for marine fuel and aviation fuel.

Pennies.

B.F.D.

Meanwhile, the state is without $35-$45 million in lost revenue and our roads become crap and we lose more fed money as a result.

Sometimes I think republicans just like cutting taxes for no reason at all because it's what they do, and they don't care about the real outcomes.

I agree with stgeese above. This appears to be another one of our Governor's ploys to score points with voters by saying, "HEY! I CUT YOUR GAS TAXES!!! I'm the king of tax cuts!"

"Tax cuts" are the two most popular words known to Republipukes.

Intelligent people know better.

To the legislature: Leave the gasoline tax in place. I'd rather have decent roads instead of an additional $2.40 in my pocket every month. I believe in paying taxes for services and things that cost money, like operating our state and maintaining roads and ferries.

What is wrong with our Governor?!? Why can't we seem to get a decent one? WAIT! I figured it out! It's because Alaska keeps voting REPUBLICAN!

We can do better.

Jo MacNamara
697
Points
Jo MacNamara 03/21/12 - 05:40 pm
1
2

Send a message to your legislators opposing the tax suspension

http://www.legis.state.ak.us/poms/

This is an easy way to send a quick, personal message to every legislator. I book mark it, and send them messages all the time in support or opposition of legislation.

fisherwoman44
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fisherwoman44 03/21/12 - 09:50 pm
1
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@Jo Mac

You make some valid points and then follow it with terms like "Republipuke." Why do you do that? People might listen to you otherwise.

Jo MacNamara
697
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Jo MacNamara 03/22/12 - 05:17 am
0
0

@fisherwoman44

Because I like to.

To me, the republican party is the biggest threat to freedom we have. They protect the rich at the expense of the poor. They are constantly in bed with big oil.

They stamp on liberty. They are the 1%. They are gay rights' biggest opponents. And recent history in Alaska has shown that our last three republican governors have been three of our worst, yet this red state keeps votin' for 'em you betcha (wink)!

And we never learn our lesson.

So my use of the word "puke" is in response to people like Rush Limbaugh who change words like "feminist" to "feminazi" and who use terms like "bed wetting liberals" and other such words to portray disgust for groups of people he does not like.

Rush Limbaugh is the yin. Guess that makes me the yang. I bring balance to the absurdity. And I have fans and supporters in these forums as well as adversaries. I welcome them all. People listen to me either way.

It might be childish, but I prefer the term "colorful."

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