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New Bill Would Fund Transportation Through Car Sales Tax Revenue

July 22, 2013

A state representative from Crawford County says he plans to introduce legislation that would help Pennsylvania’s transportation infrastructure woes without any new taxes.

Representative Brad Roae says his plan would raise $6.6 billion for road and bridge repairs within ten years, and $1.7 billion per year after that.  It would utilize the sales tax revenue collected through the purchases of automobiles in Pennsylvania.

Roae says the state currently collects $1.2 billion annually through taxes on auto sales. His bill would transition ten percent of that amount from the state budget beginning next fiscal year, and twenty percent the following year, and the amounts would be increased by ten percent increments each year until 100 percent of the sales tax revenue is used for road and bridge repairs, beginning in fiscal year 2023-2024.

The sales tax money currently goes into the state budget, where Roae says it represents just four-tenths of one percent of Pennsylvania’s current spending plan.  Under Roae’s bill the revenue would be transitioned to the state’s Motor License Fund.

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