Lawmakers eye gas-guzzler tax governor opposes
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By LISA RATHKE The Associated Press - Published: April 4, 2007
MONTPELIER — Lawmakers are considering imposing a surcharge on gas guzzling vehicles as a way to boost funding for public transportation, but the measure faces strong opposition from the governor.
Automobile dealers also disapprove of such a tax and have resisted similar attempts in other states.
The Vermont bill would impose a $150 surcharge on the purchase of new cars that get less than 20 miles per gallon and trucks that get less than 17, except those used for work.
The fee targets "vehicles for greenhouse gas that might be inappropriate," House Transportation Committee Chairman Richard Westman said Tuesday.
"A lot of the vehicles that we're talking about are very large vehicles that there are alternatives for," he said.
The bill ties into the Legislature's discussions about global warming and the overall lack of funding for transportation, Westman said.
Lawmakers were prompted to look for ways to drum up more funding for next year's public transportation budget after the governor proposed spending $17.2 million, $400,000 less than this year. The money would be cut from budgets used to replace equipment.
Lawmakers hope to add nearly $1 million to purchase new mass transit buses and vans, which some of the state's 12 public transit agencies say they need to replace aging vehicles.
But the Douglas administration, which has proposed reducing the tax on hybrids and other vehicles that get more than 30 miles to the gallon, says the bill's funding mechanism is unfair.
"It's a tax that punishes families who rely on minivans and similar vehicles to go to and from hockey practice, music lessons and other family activities," said Agency of Transportation spokesman John Zicconi.
The Vermont Automobile Dealers Association said it opposes the surcharge for the same reason and says such a tax should be based on the number of miles people drive.
"This is a difficult thing for my members right now," said Marilyn Miller, executive director. "Sales are not great. It's a very difficult time for our industry to try to implement a tax like this."
California lawmakers are considering a similar measure, after one died last year, and Maryland passed a law nearly a decade ago that was later found to conflict with a federal gas guzzler tax, said representatives of the states' automobile dealer associations.
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