Local officials fear an initiative to cap the state’s gas tax will mean fewer dollars for paving and building roads.
The DOT is opposing state legislation that would cap the motor fuel excise tax rate where it is now at 32.5 cents a gallon.
The DOT’s analysis also says the cap would save the average driver $7.50 a year.
Wilmington Mayor Bill Saffo said drivers might save money but without the tax revenue, “unfortunately they may not be able to drive on the roads.”
He then apologized for being facetious at the council’s agenda meeting. But members said it was a good point. If the state funds don’t come in, the city could be on the hook for $9 facetious million in road resurfacing.
But co-sponsor of the legislative proposal, state Rep. Mike Hagar, said the cap would not take away any money that already flows into the state’s transportation funds. He said the projected loss is based on what the state would bring in if gas prices rise and the tax goes up.
“It’s not like it’s money that was coming to them that we’re holding back,” he said.
Hagar, a Republican whose district covers Cleveland and Rutherford counties, said no savings from the tax cap is too small.
“Even if it saves a dollar, that’s a dollar that goes into the pocket of the consumer,” he said.
The bill that would still allow the tax to decrease if gas prices go down has been filed in the House.
“We want our folks to put their money back into the economy not give more money to the state,” Hagar said.
The DOT argues the small savings from gas tax cap to drivers is not worthwhile when compared with the benefit of new construction, Assistant to the City Manager for Legislative Affairs Lawless Bean said.
The city council found out about the gas tax cap during a legislative update after the regular agenda briefing Monday.
Council is also concerned about various annexation bills that could put an end to forced annexation.
Councilwoman Laura Padgett said the city should better inform the citizens of the benefits of annexation.
“Annexation means lower, stable city taxes,” she said.
Padgett suggested putting that information on rolling billboards in the city.
Councilwoman Kristi Campos said she didn’t agree with using the city’s public information outlets that way. An opponent of forced annexation, Campos also argued against Padgett’s comment that citizens are don’t know what annexation means for Wilmington.
“I think a lot of them understand it. They were annexed,” Tomey said.
The council will also consider a resolution during its regular meeting Tuesday to oppose state legislation that Padgett says would take away the city’s control of billboard regulations.
By Shelby Sebens
Published: Monday, March 21, 2011 at 2:59 p.m.
Last Modified: Monday, March 21, 2011 at 2:59 p.m.
