2-cent tax increase will fund repairs

Valley lawmakers say the timing of the increase is tough for working families.
By CYNTHIA VINARSKY
and DON SHILLING
VINDICATOR BUSINESS STAFF
Don't blame gas station owners, OPEC or high summer demand for the next spike in gasoline prices.
This one is on Ohio legislators.
The state gas tax goes up 2 cents a gallon Thursday because legislators decided the state needed more money for highway and bridge projects.
The tax increase comes as gas prices have fallen about 30 cents since reaching a record high a month ago.
Steve Treharn, owner of Steve's BP Service in McDonald, said he'll pass the tax increase on to consumers by adding 2 cents to his prices.
"I don't even think they'll notice it," he said.
A month ago, customers were complaining all the time about high gas prices, he said. Today, no one's talking about it, he said.
"I can't see people not buying gas because the tax went up," he said.
Roller-coaster prices
In the Youngstown-Warren area, the average price of a gallon of unleaded gas as of Monday was $1.73, said the AAA Ohio Motorists Association. The record high for the area was set May 26 at $2 a gallon.
The tax increase is expected to raise $120 million for use on highway construction projects.
Motorists will pay a total of 44.4 cents a gallon in taxes -- 26 to the state and 18.4 cents to the federal government.
Thursday's increase is part of a three-year program to raise the gas tax by 6 cents a gallon. The first 2-cent increase was implemented July 1, 2003, and the final one will take effect July 1 of next year.
Valley lawmakers say the region will likely benefit from the tax, but some argue the Youngstown-Warren area seldom gets its fair share compared with other metropolitan areas.
While he opposed the tax, state Sen. Marc Dann of Liberty, D-32nd, said Valley residents should expect to the increases to pay for more infrastructure improvements and road maintenance work.
"Our area has done very well recently, with the 711 highway project and the widening of state Route 46," he said, "but I would have preferred other ways of raising that money. Our corporations in Ohio don't pay their fair share of the tax burden."
Dann said he doesn't oppose the concept of a gasoline tax because it taxes those who use the roads. He argued the timing of this increase was especially bad, however, because the state also increased its sales tax last year. The sales tax went from 5 percent to 6 percent. "We're putting too much burden on ordinary working families," Dann said. "I'd rather see more of the costs passed on to corporations and people who can more easily afford it."
State Sen. Robert F. Hagan of Youngstown, D-33rd, acknowledged that the gas tax funds might help to fund some bridge reconstruction projects planned for the Valley, but he thinks other regions of the state will likely benefit more.
Local infrastructure projects like the 711 and Route 46 expansion "pale in comparison" to massive projects under way in Columbus, Toledo and Cincinnati, Hagan said.
"I've been saying for a long time that we aren't getting our fair share of the gas tax revenue," he said. "I certainly could be talked into a gas tax increase if I could convince my constituents that there would be some benefit for them."
Tax overload
Timing was the main concern of state Rep. Sandra Stabile Harwood of Niles, D-65th. She said the recent sales tax increase combined with the gas tax increases are putting too much burden on working people, especially those with long commutes.
"Of course we need to protect our highways and our infrastructure, but the timing was just horrible," she said. "The timing was such that people just can't absorb one more increase."
State Rep. Daniel S. Sferra of Warren, D-64th, complained that license registration fees also were increased in the budget that raised gasoline taxes. "I just went to get my license plate yesterday. It was $44!" he said. He believes the 6-cent increase over three years is too much and argued the state should look for other ways to raise funds for roads.
vinarsky@vindy.comshilling@vindy.com