Otter approves $95 million transportation measure

BOISE — A $95 million transportation funding measure has been signed by Idaho Gov. Butch Otter.

The bill calls for a 7-cent gas tax increase as well as increased registration fees for all vehicles. Light vehicles and passenger car registration will increase by $21 while commercial trucks will be subject to a $25 increase. Motorcycle registration will be raised by $19. Under the plan there will also be a $75 fee for hybrid cars and a $140 fee for electric vehicles. The new money raised by the gas tax and registration fee increase will be distributed to state and local agencies. 60% will go to the state and 40% to local districts. In addition to the $95 million raised by the gas tax and registration fee increase, the bill calls for a two year surplus eliminator. The surplus eliminator will transfer 50% of Idaho’s unallocated, general fund revenue to the Idaho Transportation Department’s Strategic Initiative Program for the repair and maintenance of Idaho’s roads. After those two years the legislature will likely have to re-examine the plan and determine if changes are necessary.

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