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SALT LAKE CITY (AP) -- With gas prices dipping below $2 per gallon, state officials are considering changing the gas tax to raise money for transportation projects.
Gov. Jon Huntsman -- in the midst of developing his budget -- is looking at altering the way gas purchases are taxed. Rather than the current set rate of 24.5 cents per gallon, the proposed change would have drivers pay a percentage of the price at the pump.
Huntsman spokeswoman Lisa Roskelley was reluctant to call it a tax increase.
"It would depend on how it was assessed," she said. "Transportation is a different sort of situation because it is a user fee."
The Utah Department of Transportation earlier this month put nearly $4 billion in projects on hold because of revenue shortfalls.
Senate President-elect Michael Waddoups, R-Taylorsville, said he's hoping the governor will call a special session to get several transportation projects back on track.
Options could include raising the gas tax or increasing the percentage of the state sales tax that goes toward transportation project.
Waddoups said he thinks those kinds of proposals would get support from lawmakers once they understand the economic impact of UDOT's suspended projects, including the Mountain View Corridor connecting Salt Lake and Utah counties.
"A lot of us will say we don't want it," Waddoups said. "But when we see the ramifications, it might be different."
The proposals, though, could be a tough sell in the House.
"That is a desperate last resort, and I'm a long ways from that position," said House Speaker-elect Dave Clark, R-Santa Clara.
The governor's proposal might be more acceptable "when gas is not a high of $3 to $4 a gallon, but it is still fundamentally an added tax that hurts people," especially those already affected by the struggling economy, Clark said.
He also said he supports a special session to discuss additional budget cuts. In September, lawmakers trimmed $272 million from the budget year that ends June 30, 2009.
"The revenue numbers continue to shrink," Clark said. "We addressed a shortfall in September and now we're looking at one that could be even bigger ... It's much better to solve that when we have seven months to work with."
But Huntsman hasn't called for a special session. Roskelley said the governor's budget announcement next week will deal with today's budget shortfalls and those expected in the coming year.
"The goal is to put forward a budget proposal that can provide a pathway forward that wouldn't necessarily require a special session," Roskelley said. "That's not to say we wouldn't entertain that conversation with the Legislature."
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Information from: Deseret News
(Copyright 2008 by The Associated Press. All Rights Reserved.)
