Massachusetts: Automatic Gas Tax Increase Repealed
- Fuel Tax News
- Nov 12, 2014 | Gail Cole
Voters in Massachusetts have rejected the automatic gas tax increases that were established in a 2013 transportation law. The law indexed the price of gas to inflation in order to fund transportation needs, such as repairing bridges and roads and maintaining and expanding public transportation.
Now that the automatic increases have been repealed, the state will lose close to $1 billion in transportation revenue over the next decade.
Opponents argued that automatically increasing the gas tax each year amounted to taxation without representation. Proponents argued that it was a relatively painless way to increase sorely needed revenue.
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