The following column is the opinion and analysis of the writer.
The Arizona Legislature is currently considering House Bill 2899, which would increase gas and diesel fuel taxes for the first time since 1990. It would also resolve a current inequity where hybrid and alternate fuel vehicles don’t pay their fair share for using our roadway system. Similar legislation was considered last year and was rejected. There seems to be a glimmer of hope this year because the bill has bipartisan support and recently passed overwhelmingly in the House Transportation Committee.
Most people have gas-powered vehicles and now pay 18 cents per gallon in Arizona fuel tax. Fuel tax revenues, along with annual registration fees and other fees, is deposited into the state’s Highway User Revenue Fund. The fund is then distributed monthly to Arizona Department of Transportation, municipalities and counties by formula. Arizona counties, in particular, rely very heavily on HURF because they have few local options for funding road construction and repair.
The bill would increase our gas tax by 6 cents per year over three years, bringing it up to 36 cents per gallon. This rate is on par with several neighboring states. After the new rates are in place, they would increase periodically according to an inflation index. Coincidentally, had the current rate of 18 cents been indexed in 1990, it would be at about 36 cents now. That said, one can view the proposed increase more like a technical correction to the last increase. The new fees on electric vehicles would start at $111 per year and increase to $166; hybrids would be initially charged $45, increasing to $67. Both of these would also be indexed for inflation.
Over the last three decades, cars have become more fuel efficient and road repair and construction costs have increased. The buying power of HURF is simply inadequate to meet our needs statewide. As a retired transportation planning professional, I can attest that these increases are both long overdue and politically difficult to accomplish. I am currently a member of Pima County’s Transportation Advisory Committee, a nonpolitical citizen group formed by the Board of Supervisors to address the dire condition of roads in unincorporated Pima County.
We quickly learned that there is inadequate state revenue sharing and few viable options for local funding. We learned that HB 2899 is the first substantive update to HURF in over three decades of legislative inaction on this matter. When enacted, it will provide sorely needed funds to restore our failing roads, properly maintain roads that are ready to fail and expand the roadway network to alleviate congestion and accommodate economic expansion. HB 2899 will help make our roads safer, lower user costs, decrease travel times and enhance economic viability statewide. Further, the inclusion of new fees on alternative fuel vehicles resolves an inequity wherein this rapidly growing vehicle class uses the roads for free.
This legislation is supported by diverse groups including local officials and the trucking industry. I urge the legislature to enact, and the governor to sign into law, HB 2899. To do so, however, a two-thirds supermajority of the Legislature must vote affirmatively. This isn’t likely to happen unless there is broad public and business support. If you also feel strongly that our roads require additional funding, then contact your state legislators and urge them to make a tough but long overdue decision. They should vote “yes” on HB 2899.
