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House Committee Approves Greatly Revised Transportation Funding Bill

June 28, 2013

The state House Transportation Committee on Thursday cleared a transportation funding bill which is significantly different from the original Senate version.

The amended bill would provide nearly 2-billion dollars annually for transportation by the fifth year, primarily through a three-year phase-out of the cap on the oil company franchise tax.

Counties would be able to assess a five dollar per vehicle registration fee for local transportation needs.  Municipalities would be allowed to increase earned income, sales and realty transfer taxes to raise money for mass transit.

Another significant change is the “sunsetting” of the Pennsylvania Turnpike’s Act 44 obligation to PennDOT.  The 200-million dollar-per-year transfer for roads and bridges would immediately stop.  The 250-million dollar annual contribution for mass transit would continue for eight years, and it would then be replaced by money from vehicle sales tax revenues.

Committee chairman Dick Hess told Radio PA News on Thursday that it took a yeoman’s job to craft something to benefit Pennsylvania economically and still not overburden consumers.

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