Gas tax hike could help fund local road projects

Sen. Smith says measure is likely this session with tax overhaul

State Sen. Gary Smith says there’s been talk about a gasoline tax hike for years, but it’s gotten way more serious in the Legislative session that began Monday.

Louisiana’s $13 billion backlog in infrastructure needs is the driving force for the increase, which Smith said will be discussed by legislators.

“In our region, traffic is just getting heavier and thicker due to roads and bridges not maintained or developed,” Smith said. “It costs businesses and individuals dollars and time, and cause more repairs to vehicles. I think individuals realize the gas tax of Louisiana has been whittled down over time.”

For St. Charles Parish, the added tax revenue could help priority projects like the Barton Avenue extension, a Willowdale Boulevard extension and “a real, sustainable fix” for traffic congestion at U.S. Highway 90 and I-310. Smith added these projects would come with drainage improvement money.

Smith said the issue is affording the work and particularly in the state’s ongoing budget crunch. Although construction costs have risen, the state’s gas tax has not been increased in more than 20 years.

“You could build a road for $100,000 a mile a few years ago, but today it’s a few million dollars a mile,” Smith said.

Motorists pay 38.4 cents tax on a gallon of gasoline. Of that figure, 20 cents is state tax. A penny increase would raise $30 million a year.

Gov. John Bel Edwards supports a hike while Smith wants to see any bills proposing the hike first.

“I am waiting to see what is out there and what the proposals look like before they get to our side,” Smith said. “If they make it out of the House of Representatives, there will be quite a few changes and amendments to any proposal so I will have to look at the measure to see how it will affect the state and our district.”

Smith said any measure to increase the tax would have to be flexible enough to factor in gas prices at the pump. Consumers would feel it less with lower prices, but it could affect gas sales if prices skyrocket to over $4 a gallon as they have in the past.

Overall, Smith said this legislative session could be a pivotal one aimed at overhauling the state’s tax system to stabilize revenue to avoid highs and lows. He added numerous measures are slated for the session, with some aimed at raising revenue while others would replace revenue. One of the targeted areas for change is industry tax credits.

For the parish, the inventory tax credit is a hot button issue because it generates millions of dollars in revenue for parish government, public school system and Sheriff’s Office.

“We have a very convoluted tax system in Louisiana and, to some extent, it needs to be simplified,” Smith said.

“We have 14,000 companies in Louisiana and 13,000 of them don’t pay taxes,” he said. “We have a bunch of people who pay a lot or very little.”