Lawmakers are still working on Governor Dennis Daugaard’s highway and bridge funding proposal. The House State Affairs committee heard two hours of testimony on House Bill 1131. Here is the latest on this piece of legislation.
Members of the House State Affairs committee have amended the Governor’s 50 million plus proposal for roads and bridges. The new version now includes an end date of 2030 for the 2 cent annual gas tax increase. It also increases license plate fees above and beyond an initial 10% increase. Starting in 2016 license fees will rise 1 to 3 dollars annually based on the type and weight of the vehicle. The new version also tacks on an additional registration fee for electric and hybrid vehicles. Lastly, it gives counties the ability to impose a wheel tax on 12 wheels instead of just 4. Nathan Sanderson is Governor Daugaard’s Director of Policy and Operations. Sanderson says putting off tax increases for road funding will cost the state more in the long-run.
"We’ve been flat with our fuel tax for 16 years. This is the year to take the steps to meet the need," says Sanders.
Many opposed the legislation for various reasons. The proposed increase to the gas tax drew most of the criticism. Dawna Leitzke is with the South Dakota Petroleum and Propane Marketers Association. She says raising the gas tax will hurt tourism and the state’s economy.
"Customers, tourists, consumers will simply go somewhere else or go around us," says Leitzke.
The House State Affairs committee will continue discussing House Bill 1131 this Friday. A similar road funding bill has passed the Senate. Senate Bill 1 will also come before the House State Affairs committee, however, a hearing date is not yet schedule.