Published: November 20, 2009 10:56 pm      

Lawmakers pass gas tax package

CHARLESTON — Lawmakers wrote the final chapter Friday in a special legislative session by “stabilizing” West Virginia’s fuel tax, or ultimately raising it if you buy the position of its foes.

A companion bill greased the wheels for the Division of Highways to collect $27.3 million in general revenue money approved two years ago but never used due to a barrier of red tape.

A spirited debate flared in the House, led by Republican opponents, over Gov. Joe Manchin’s plan to retain the 5-cent extra on the fuel tax imposed initially in 1993 as a “temporary” one.

Republicans assailed the idea and argued the tax should expire as scheduled in 2013; otherwise, motorists in West Virginia would, in effect, be facing a tax increase.

What’s more, they maintained, the Legislature by extending the 5-cent portion is going back on its pledge.

“If you promise me ice cream by 6 o’clock, you ought to give me ice cream at 6 o’clock,” Delegate Mike Porter, R-Mercer, said.

House Finance Chairman Harry Keith White, D-Mingo, strenuously disagreed the 5-cent phase was tantamount to a tax increase and he applied his defense to the entire bill aimed at keeping the variable portion of the tax from fluctuating if prices at the pump skyrocket again.

“This is not a tax increase,” White said in closing the debate. “It will be the same when the governor signs the bill.”

Republican delegates chafed at the entire bill, saying West Virginia now pays the second-highest tax in the region, one of 32.2 cents per gallon, compared to 22.5 in Kentucky, 23.5 in Maryland and 19.3 in Virginia. Only Pennsylvania pays a shade higher at 32.3.

The fuel tax package includes a variable rate that now carries a 10 percent price floor and ceiling so it cannot move further than that in either direction. The tax is tied to the wholesale price of $2.34 per gallon. The actual tax cannot exceed 5 percent. For now, the tax is 11.7 cents per gallon. The variable is computed on the wholesale price between July and October each year and twice was frozen in West Virginia, costing the state some $140 million in sorely needed road money.

Democratic lawmakers, such as Delegates Virginia Mahan, D-Summers, and Tim Ennis, D-Brooke, pointed to “horrible” road conditions in their districts, saying repairs cannot be made unless the Division of Highways is assured of a steady income of cash.

White pointed out West Virginia ranks near the top of the list in states that assume responsibility for care of its highways. That translates into 36,000 miles of care.

“I think they (DOH) manage their dollars pretty well, considering what they have to do around the state,” he said.

White said about 60 percent of the tax is paid by out-of-state motorists anyway.

Arguing against retention of the 5-cent extra, Delegate Daryl Cowles, R-Morgan, said that portion paid by the average driver is tantamount to depriving a family of four three meals a day for six days.

Moreover, he said, the state has $168 million available it could apply to roads, and one way to cut highway costs is to stop paying flaggers $33 an hour.

Delegate Jonathan Miller, R-Berkeley, said it marks the second time Manchin has reneged on his pledge not to raise taxes, reminding lawmakers of the $70 million hike imposed last April on the business community to shore up the unemployment fund.

“I think it’s deceitful,” Delegate Tom Louisos, D-Fayette, said, referring to the 5-cent add-on imposed in 1993. “A temporary tax ought to be temporary.”

Republican leader Tim Armstead of Kanawha County, who failed in his amendment a day earlier to have the 5-cent portion expire as scheduled in 2013, maintained his opposition to the tax bill, suggesting it remains one to raise taxes.

“This is absolutely not stabilizing the tax,” he said. “It is a tax increase.”

The bill cleared on a 64-23 tally with five Democrats voting against it, including Delegates Bill Wooton and Rick Moye, both D-Raleigh, and Louisos, while seven Republicans voted for the measure, among them Ray Canterbury, R-Greenbrier.

— E-mail: mannix@register-herald.com