Bloomberg BNA: Will 2015 Be the Year of Gas Tax Reform?

While the states have sometimes been slow to react on this issue, at least lawmakers seem to be beginning to understand the reasons for gas tax reform, said Matthew Gardner, executive director of the non-profit, non-partisan Institute on Taxation and Economic Policy (ITEP).  Gas tax reform was something that many lawmakers weren’t willing to talk about a year ago, Gardner said.

For example, Iowa Gov. Terry Branstad (R) has put gas tax reform on the table for his state this year, Gardner said.

“This isn’t a guy who’s known for his advocacy for raising taxes,” Gardner said. But he also said that “it’s not a partisan thing” to recognize the basic imbalance between transportation revenue and spending.

But awareness of the issue has not always translated into action. Gardner said that close to two-thirds of states have not engaged in meaningful gas tax reform by modernizing the gas tax. With gas prices continuing to decrease, now might be the time.  On a political level, Gardner said a large source of gas tax frustration is the disconnect between services and a willingness to increase the price.

“It sure seems like a corner is being turned,” Gardner said.

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