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States Continue to Propose Tax Changes to Fund Infrastructure

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The number of states considering tax changes to fund infrastructure continues to grow.  Most recently, Connecticut  its petroleum products gross receipts tax to 8.1 percent from 7 percent, effective July 1.  In Pennsylvania, the Senate  to increase the wholesale gas tax by 28.5 cents a gallon over several years. However, the legislation faces an uncertain future in the House of Representatives. In Michigan, Rep. Wayne Schmidt (R)  legislation that would change the gas tax from the current rate of 19 cents per gallon to a 6 percent tax rate at the wholesale level. They also would increase the diesel fuel tax. In Iowa, meanwhile, Gov. Terry Branstad recently said he  looking at a dedicated share of the state sales tax as alternative sources to fund critical road and bridge upgrades in the future.

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