High gasoline prices are beginning to affect state gas tax collections, Revenue Secretary Virgil Helton told legislators Monday.
High gasoline prices are beginning to affect state gas tax collections, Revenue Secretary Virgil Helton told legislators Monday.
In April, the state tax - 32.2 cents per gallon - brought in $30.5 million. That was $2.35 million, or 7 percent, less than projected for the month, Helton told the Council of Finance and Administration.
Collections also were down $1.3 million, or 4 percent, compared to April 2007, when the gas tax brought in $31.87 million.
"The price of gasoline in the last two or three months has caused consumers to change their driving habits to the extent they can," Helton said. "You're seeing less gas consumed."
He said gas prices also are affecting toll collections on the West Virginia Turnpike. Collections have been down about 5 percent in March and April, compared to the same months in 2007, he said.
As Senate Finance Chairman Walt Helmick noted, if the trend persists, it would be a major blow to a state Road Fund that already struggles to keep pace with demands for road-building projects
Gas tax collections - projected at $380 million for the 2008-09 budget year, which begins July 1 - account for 60 percent of the state's share of the state Road Fund.
Transportation Secretary Paul Mattox said recently that the state's priority list for new highway construction projects would cost more than $25 billion - meaning that most of the projects on the list will never be built.
Helmick, D-Pocahontas, said the Legislature needs to focus now on alternative ways to finance highway construction in the state.
High gasoline prices are beginning to affect state gas tax collections, Revenue Secretary Virgil Helton told legislators Monday.
In April, the state tax - 32.2 cents per gallon - brought in $30.5 million. That was $2.35 million, or 7 percent, less than projected for the month, Helton told the Council of Finance and Administration.
Collections also were down $1.3 million, or 4 percent, compared to April 2007, when the gas tax brought in $31.87 million.
"The price of gasoline in the last two or three months has caused consumers to change their driving habits to the extent they can," Helton said. "You're seeing less gas consumed."
He said gas prices also are affecting toll collections on the West Virginia Turnpike. Collections have been down about 5 percent in March and April, compared to the same months in 2007, he said.
As Senate Finance Chairman Walt Helmick noted, if the trend persists, it would be a major blow to a state Road Fund that already struggles to keep pace with demands for road-building projects
Gas tax collections - projected at $380 million for the 2008-09 budget year, which begins July 1 - account for 60 percent of the state's share of the state Road Fund.
Transportation Secretary Paul Mattox said recently that the state's priority list for new highway construction projects would cost more than $25 billion - meaning that most of the projects on the list will never be built.
Helmick, D-Pocahontas, said the Legislature needs to focus now on alternative ways to finance highway construction in the state.
"We can't wait until next year to say, 'Where are we going to come up with another $40 million to $50 million for our road-building costs?' " he told the council.
He also noted that, because state Road Fund dollars are used to match federal highway funds, the true impact of a downturn in gas tax collections could be in the $80 million to $100 million range in the 2008-09 budget year.
Meanwhile, overall state tax collections are running slightly above estimates this budget year, also because of high energy prices.
With two months remaining in the budget year, the state had collected $3.29 billion in taxes - $168.7 million over projections, Helton said.
Severance tax collections are at $295.9 million, or $40.8 million above estimates - driven by high coal and natural gas prices.
That's 16 percent above estimates for the 2007-08 budget year, and $30.4 million or 11 percent ahead of the April 2007 year-to-date figure. The state severance tax on coal and natural gas is 5 percent of the sales price.
Helmick said he believes high energy prices also are reflected in corporate income tax collections (up 12 percent, or $36 million, over the estimated $255.1 million year-to-date) and in personal income tax collections (up 10 percent, or $113.65 million, over the estimated $1.1 billion).
Helton said he believes the state will finish with a budget surplus close to the current $168 million figure when the budget year ends June 30.
To contact staff writer Phil Kabler, use e-mail or call 348-1220.
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The United States agreed to transfer jobs and technology to developing countries under the Algiers Declaration in March of 1975:
A major portion of the planned or new petrochemical complexes, oil refineries and fertilizer plants be built in the territories of OPEC Member Countries with the co-operation of industrialized nations for export purposes to the developed countries with guaranteed access for such products to the markets of these countries. [sections 10-11]
In 1977 Representative Benjamin Rosenthal of New York produced secret Internal Revenue Service documents going back to 1950. They showed that the tax laws of Saudi Arabia were drafted with the help of Aramco to call the added price of oil not a "royalty" or "cost of doing business," as was proper, but an income tax." The Saudis did this knowing that income tax paid to a foreign country is deductible from the income taxes an oil company pays the United States on all income received in the United States by the parent firm. From Pgs 61-64 The Media Monopoly by Ben Bagdikian 5th edition
"Since that time the major multinational U.S. oil companies have paid hardly a penny of U.S. income tax on their foreign income." pg130 Banks Borrowers, and the Establishment
Oil was $127 a barrel recently.
Germany fought WWII with synthetic gas from coal. America, with 1/3rd of Earth’s coal, can be energy independent for an estimated $55 a barrel, including the infrastructure and labor force necessary to operate plants. It is proven technology. Visit http://governor.mt.gov/hottopics/faqsynthetic.asp
Synfuels are cleaner burning than gasoline and they do not increase the cost of food by diverting corn to ethanol.
Furthermore, reducing our trade imbalance keeps jobs in America. Every billion of trade deficit costs 13,000 jobs. $400 billion for oil last year: do the math.
And we stop sending billions to countries that sponsor terrorism.
Harness your anger at the pump. Call you're US Senators and demand they break ground on America's energy independence by encouraging an American synthetic fuel industry in this decade. If you don’t raise your voice the oil companies and politicians will assume you are ready to pay even more.