A Wyoming senate committee is hoping that decreasing car registration fees would offset a projected diesel fuel tax rise.
On Thursday, the Joint Transportation, Highways, as well as Military Affairs Committee considered a legislative proposal that would raise Wyoming’s diesel fuel tax by 5 cents along with gasoline tax by 2 cents. Automobile registration fees would be decreased in exchange.
The exchange’s goal is going to be to remove the state’s portion of registration costs on citizens in an amount equivalent to the income earned by tax hikes.
This corresponds to a $90 tax cut for diesel automobiles and a $30 tax cut for gasoline vehicles.
The goal, according to bill backers, is for out-of-state drivers to bear the brunt of the fuel tax increase.
Fuel Taxes Increase Due Inflation And Administrative Costs
Due to rising inflation and administrative costs, WYDOT is recommending that the Wyoming Legislature consider hiking the state’s fuel taxes, which are now 24 cents per gallon.
This would be increased to 29 cents for diesel and 26 cents for gasoline under the proposed legislation.
WYDOT anticipates receiving $82.5 million in gasoline tax income and $87 million in diesel tax revenue in 2024 under current tax rates.
Inflation, according to WYDOT Director Darin Westby, has made it much more difficult for his team to adequately maintain the state’s roads, with certain construction prices jumping by up to 50%.
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Refund On Increase Fuel Tax Via Rebates
Instead of removing registration fees, a companion bill would allow Wyoming residents to obtain a refund on their increased fuel taxes in the form of a rebate on the cost of car registration or the license tax, whichever is less.
As noted by Wayne Hassinger, WYDOT’s Fuel Tax Administration Program manager, depending on the number of registered diesel vehicles in the state, the measure may result in up to 80,000 refund requests per year.
Hassinger claimed that the department would normally need to hire up to six additional employees to facilitate these rebates, but a clause in the bill draft allowing the administration to deduct 2% of tax revenues for administrative costs would cover these new salaries.
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