No Gas Tax Hike for Delaware - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

No Gas Tax Hike for Delaware

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(Photo: MGN) (Photo: MGN)

REHOBOTH BEACH,  Del.- The reign of low gas prices may soon be over as a new gas tax increase went into effect Jan. 1 in some states, including Maryland and Virginia.

But Delaware is not one of the states increasing its gas tax rates. The First State has not seen an increase in gas tax rates since 1995.

Last year, Gov. Jack Markell proposed a 10-cents-per-gallon gas tax increase to pay for road and bridge work over the next five years. But with little support from lawmakers, the proposal went nowhere.

Tax policy analysts from the Institute of Taxation and Economic Policy have said gas tax increases help fund infrastructure projects and without them, infrastructure growth can slow down.

Bridge repairs, road maintenance, and sidewalk construction are a few examples of public works projects that can be funded through tax revenues, as well as through private contractors. 

Frank Miranda of Ocean View, Del. said now that many cars manufactured today have better gas mileage than in the past, the state needs to bridge the gap between people buying less gas and falling gas prices, in order to generate more revenue for infrastructure growth.

"I support an increase in gas taxes to help fund those projects," said Miranda. "Jobs likes that for infrastructure are good paying jobs for middle class people," he said. 

Tim Meadowcroft of Selbyville, who once owned a gas station, said he wouldn't be opposed to paying higher gas prices to help fund public works projects since the state has affordable taxes.

"Delaware has a low tax rate for everything so we could afford to inch up some taxes on some other things," said Meadowcroft.

"Everyone's flocking here because of no sales tax, low property taxes and all that, so I'm sure there's a little room," said the former gas station owner.

Some drivers in Ocean City, Md. said they would support gradual increases in gas prices or other taxes if it meant supporting public projects.

D'Shawn Doughty of Salisbury said Maryland's 3 cent gas price increase doesn't bother him as long as the revenue collected benefits the state.

"I don't mind just 3 cents as long as the gas prices are staying where they are now," said Doughty. "Three cents isn't that much when you're talking about better roads or bridges, better transportation," he said.

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