Under former Republican Gov. Tom Corbett, the Pennsylvania General Assembly passed a $2.3 billion transportation bill, which nominally affects drivers who are projected to pay for the projects through an increase in the price of gas over five years.
The bill, known as Act 89, is slated to construct, repair and finance transportation infrastructure projects throughout the Commonwealth. Partial funding for the new transportation package is being derived from the elimination of the flat 12-cent gas tax and modernizing an outdated transportation financing structure through the uncapping of the wholesale, Oil Company Franchise Tax, Penn Dot explains on its website.
According to Penn Dot, there are 43 projects completed in York County to date due to Act 89, which was passed in 2013. The amount spent on those projects is $67 million.
The price of gas will go up because the Oil Company Franchise Tax was uncapped. That means consumers will make up the difference of what gas station owners pay for the price of oil and what they charge at the pump. If passed on to motorists, the change as of January 1, translates roughly into an 8 cent increase per gallon.
Is a gas tax increase worth the investment in Pennsylvania’s transportation infrastructure?
