The Wyoming Joint Transportation, Highways and Military Affairs Committee tabled the draft bill that would increase Wyoming's fuel tax from $.24 per gallon to $.29 per gallon next year and increase an additional $.05 per gallon in 2023 and 2024... for a total of $15 per gallon. The bill was requested by the Co-Chairman for discussion purposes. Readers will remember that multiple fuel tax increase bills have been dispatched by the legislature over the years with only the 2013 $.10 per gallon increase passing.
Interestingly, Rep. Jerry Obermueller (R) Casper, presented a concept for utilizing 1% of the mineral severance tax fund proceeds for highway repairs and maintenance. Obermueller is a CPA and has delivered several forward thinking proposed on a variety of taxation topics including the Big Box Sales Tax bill that failed two years running. The Committee was intrigued by Rep. Obermueller's suggestion and instructed LSO to draft a bill for discussion in the next meeting.
Finally, the Committee discussed the pending Infrastructure Investment and Jobs Act moving through Congress and how that bill would impact Wyoming, should it pass. Accordingly, $1.5 billion would come to Wyoming for highways and $225 million for bridges ... as the bill passed the Senate.
Since Obermueller's concept was compelling and since the legislature continues to resist another fuel tax increased, and with the bill in Congress representing such a huge impact on Wyoming's highway budget, the Chairman pulled the fuel tax bill for discussion at the next meeting along with the Obermueller draft bill and a report on the outcome of Congressional actions, if completed by then.
WPMA remains committed to supporting a fuel tax increase as long as the increased amount does not take the fuel tax higher than surrounding states (Colorado excluded). Staff will monitor all the above and discuss with the Wyoming Trustees before the next Committee meeting.
During the hearing, WPMA staff responded to testimony from the Farm Bureau lobbyist insinuating that price gouging was taking place in Wyoming. Staff pointed out the many maintenance issues refiners were navigating, the fact that demand ramped up so quickly that supply was stressed to the point that an HOS waiver was issued by the Governor and that Wyoming was lucky that petroleum marketers worked incredibly hard to assure very few outages were experienced ... including the diesel-intensive agriculture industry. Staff explained the importance of replacement costs in a volatile market and the complexities few understand. He asserted that the street sets the price of fuel and that things were finally stabilizing. Farm Bureau's lobbyist routinely attempts to throw the petroleum retail industry under the bus on pricing issues .... a continued backlash at the elimination of the agriculture gasoline allowance WPMA was able to eliminate many years ago. Co-Chairman Landen privately thanked staff for addressing the Farm Bureau representatives assault on the retail industry.
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