The Senate is set to hear legislation that would dedicate .45 percent of the state sales tax, set to expire in 2025, to road and bridge construction.
The bill by Bossier City Senator Barrow Peacock would raise about 840 million over three years. Peacock said it’s similar to how Texas funds its road projects.
“Our neighbors to the west, Texas, have basically the same gas tax that we have in our state but they also dedicate half a penny of their statewide sales tax to infrastructure,” said Peacock.
If adopted the proposal would generate 168 million in 2022, 294 million in 2023, and 387 million in 2024 as it is gradually phased in.
Peacock said with billions in federal infrastructure aid potentially headed our way we need to start putting some money aside.
“The one thing we don’t want to have happen as a state is for us to not have the needed funds to be able to have the match from the state for federal funds,” said Peacock.
The legislation requires at least half of the funds to be evenly divided amongst the state’s nine transportation districts and all funds must be used for the direct cost of projects.
The bill cleared committee with no votes against but with some concerns it could prompt another fiscal cliff. Peacock argued it will gradually install fiscal discipline ahead of the tax’s expiration.
“It prevents us from having another fiscal cliff by tapering off the dependency on the .45 percent sales tax over the next three years,” said Peacock.
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