Monday, June 05, 2006

Taxing issue

This may set a bad precedent. NSSGA reports that on May 31, the Delaware House Revenue and Finance Committee passed House Bill 421 to suspend its motor fuels tax from June 1 through Sept. 30, setting it up for a floor vote in the House. Delaware's motor fuel tax is currently 23 cents per gallon of gasoline and 24 cents per gallon of diesel.. This bill would make up the loss to the Transportation Trust Fund by appropriating $50 million from the state's general fund to the to replace the forgone revenue from the suspended motor fuels tax. Legislators state the main objectives of the bill are to give Delaware a competitive edge over neighboring states during the summer months and simultaneously increase the sales of motor fuels and gross receipts tax revenues. However, the bill would restore the gas tax just weeks before the November election, which may dampen support for the measure among state lawmakers, almost all of whom are up for election this year . Delaware is not the only state to consider a temporary suspension of its fuels tax as several states across the country are examining this option. Your comment?