Sales tax on Idaho fuel requested

BOISE – Driving in Idaho may get more expensive.

The Idaho Transportation Board recommended Thursday that the state keep its 25-cents-per-gallon gas tax, while extending the 6 percent sales tax to fuel.

The board says the additional money from the sales tax is needed because the state faces an annual shortfall of $200 million for highway construction – or $6.1 billion over the next 30 years.

“We’re not just crying wolf here,” board Chairman Frank Bruneel said. “Skyrocketing construction and maintenance costs, stagnant revenues and Idaho’s explosive growth have created a funding crisis that needs to be addressed.”

The request will be forwarded to the 2007 Legislature and Gov.-elect C.L. “Butch” Otter.

Officials said levying a sales tax on gas could raise $108 million per year. The board, which oversees the state’s road-building agency, also recommended that lawmakers pass measures to raise an additional $95 million.

Those include proposals to eliminate a tax exemption for ethanol, boost vehicle registration fees by 75 percent, and levy a new state surcharge on rental cars. Other proposals would increase fees by 75 percent for trucking permits and Transportation Department services, and introduce road-related impact fees on new construction.

The new money would help pay for state and local highways, Idaho State Police, railroad crossings, bridge inspections and the state Department of Parks and Recreation.

The plan is based on a report by the Forum on Transportation Investment, an independent committee that in two years has held 14 meetings across Idaho. It made recommendations on how to improve the highway system – and find a way to pay for it.