The number of states considering tax changes to fund infrastructure continues to grow. Most recently, Connecticut increased its petroleum products gross receipts tax to 8.1 percent from 7 percent, effective July 1. In Pennsylvania, the Senate voted to increase the wholesale gas tax by 28.5 cents a gallon over several years. However, the legislation faces an uncertain future in the House of Representatives. In Michigan, Rep. Wayne Schmidt (R) introduced legislation that would change the gas tax from the current rate of 19 cents per gallon to a 6 percent tax rate at the wholesale level. They also would increase the diesel fuel tax. In Iowa, meanwhile, Gov. Terry Branstad recently said he favors looking at a dedicated share of the state sales tax as alternative sources to fund critical road and bridge upgrades in the future.
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