Why voters Should Not vote for the Fuel Tax Shell Game

Why voters Should Not vote for the Fuel Tax Shell Game

Are we raising the Utah State fuel tax by 33% and somehow expecting it to go toward Public Education?

Op-Ed in SL Tribune

As you likely know by now a “Nonbinding Opinion Question #1” is on the ballot this fall which reads: "To provide additional funding for public education and local roads, should the state increase the state motor and special fuel tax rates by an equivalent of 10 cents per gallon?"   

Besides the 33% Utah State fuel tax increase being proposed, there are some other major problems with the proposal. While you can use state sales tax money in any of at least three state budget areas, Transportation, Public Education and Higher Education, Education money from Income Tax is limited by the Utah State Constitution to only Public Education and Higher Education.   

Fuel Tax money is limited by the Utah State Constitution to Transportation and Transportation items only, not public education.

To advertise that you are going to move taxpayer money around so you are using Transportation only money somewhere else violates at minimum the intent of the Utah Constitution.

The other issue with this proposed shell game is Transportation related sales tax should also go to Transportation - based on the same section in the Utah State Constitution. It is the sales tax going to Transportation that this “shell game” plans to use to make this whole scam “legal”.
With more Utah State Fuel Tax, the promoters of this tax increase think the State Legislature will reduce the amount of State Sales Tax being invested in Transportation and move that to Higher Education and then move more Higher Education money to Public Education.

By using Fuel Tax to increase the Education Fund, at some point you are either directly violating the Utah Constitution or at minimum violating the intent.
Is the idea of asking the voters to agree to this shell game scheme supposed to let the Utah Legislature and the Governor off the hook for not following the State Constitution?

Utah State Constitution, Art XXIII Sec. 5 https://le.utah.gov/xcode/ArticleXIII/Article_XIII,_Section_5.html?v=UC_AXIII_S5_1800010118000101
   
Income Tax only for Public Education and Higher Education:
“5)    All revenue from taxes on intangible property or from a tax on income shall be used to support the systems of public education and higher education as defined in Article X, Section 2.
   
Fuel tax and Transportation related sales tax only for Transportation:
“6)    Proceeds from fees, taxes, and other charges related to the operation of motor vehicles on public highways and proceeds from an excise tax on liquid motor fuel used to propel those motor vehicles shall be used for: (a)    statutory refunds and adjustments and costs of collection and administration; (b)  the construction, maintenance, and repair of State and local roads, including payment for property taken for or damaged by rights-of-way and for associated administrative costs; (c)  driver education; (d)  enforcement of state motor vehicle and traffic laws; and (e)  the payment of the principal of and interest on any obligation of the State or a city or county, issued for any of the purposes set forth in Subsection (6)(b) and to which any of the fees, taxes, or other charges described in this Subsection (6) have been pledged, including any paid to the State or a city or county, as provided by statute. “

There is already a major issue with the Education Fund when the Board of Regents can raise Higher Education tuition without approval from the State Legislature, when they don’t get all the money they want. This increase in the Fuel Tax will not solve that issue.

Vote No on Question #1. We don’t need any more “shell games”.

[Update]

The most stable and most long term funding of roads in Utah is not the fuel tax. It is the transportation related sales tax. That includes electric cars and tires for any car. Based on the state constitution the transportation related sales tax also goes to transportation. Currently about $579 Million per year. The #utleg has been using the number 17% of the overall sales tax as the approx. value that is transportation related. Based on the 17% number there is currently approx. $18 Million extra money from sales tax going into Transportation. Question 1 proposes to move approx. $125 Million from the sales tax to Education Fund. That means it is in violation of the state constitution. That doesn't even get into that the fuel Tax can't be used for education, with the exception of drivers education.

Gas Tax Options

If you read the survey I sent out, or this article:
http://www.sltrib.com/news/2084871-155/house-senate-split-over-gas-tax



There is a 3rd option. Keep the fuel tax a fixed number per gallon, 24.5 cents. Adjust that with a CPI increase or decrease each year with caps so it doesn't go up or down too fast. So next year could be 25 cents or perhaps 25.5 cents per gallon. The amount of funds wouldn't keep going down in value each year based on inflation.

The other two options, in my opinion, will not pass both houses. if it is sales tax, we could double the amount going to the state per gallon in a year if gas prices go back to $4 per gallon. It is too unstable with the potential of fast tax increases or leaving the state and local governments hurting for road funds again. .

Raising the fixed rate by 5 cents is a 20% increase for the tax. That doesn't fly with most voters where I live. Raising it by 10 cents or 41% increase is even worse.

We have, dozens of cities that want more money from the state for their local roads. You do realize 30% of the state fuel tax goes to the local cities, etc. for local roads. They have been raising local property taxes or cutting police or fire to cover the shortfall. They either want more money from a larger fuel tax or permission to raise local sales tax for this purpose.

Under Utah Art XIII sec. 5, 6   the State Fuel tax has to go to roads or drivers training or UHP or debt re roads. It doesn't go in a general fund. The Utah Legislature hasn't raised it a little based on CPI for many years.

The fuel tax doesn't go to the UTA. It does go to UDOT.

UTA gets its funding from local sales tax, specifically voted on to fund UTA. It has also received funds from the Federal Government.

Approx. 17% of the sales tax collected in Utah is transportation based, including cars, tires, oil, etc. Approx. that percentage of the state portion of that tax goes to roads. See again Utah Art XIII sec. 5, 6 . Those electric cars are paying into the road fund. The Governor in 2011 vetoed a bill, which sends this money to roads, which was passed again in a veto override session by the legislature. In his current budget, the Governor proposes to use this money for something else, but that would require the law to be changed, which based on Utah Constitution, Art. XIII, Sec. 5, (6), it likely will not.

This transportation based sales tax is general fund money that normally could be used  for any other state program. 

The State Income Tax, goes to K-12 Public Education and also Higher Education. Utah Art. XIII, Sec. 5 (5).