Lawmakers in Utah have agreed to raise the gas tax for the first time in nearly 20 years.
At the final hour of the legislative session, the House and Senate agreed to put aside their differences in order to reach accord. The final measure was approved 44-29 in the House and 20-8 in the Senate (Salt Lake Tribune).
Effective January 1, 2016, the gas tax will increase by approximately 5 cents per gallon. Automatic rate increases are set to start in approximately six to ten years, once the wholesale price of gasoline reaches $2.45 per gallon.
Local tax increase allowed
In addition to the gas tax hike, lawmakers have granted counties the right to seek voter approval for a sales tax increase of up to twenty-five cents per dollar. Revenue generated by the local option tax would fund local projects.
Businesses can stay on top of sales tax rate changes in all states. Learn more.
