Passenger Bus, Rail and Motorcoach Industry News

Gov. Mark Dayton's task force on transportation is calling for an increase in local sales taxes, gas taxes and vehicle fees. He created the task force last year in response to more demand for new revenue sources to pay for transit and highways.

In a 176-city survey, released by the United States Conference of Mayors at the National Press Club on Tuesday, a majority of mayors said they will oppose a gas tax increase unless funding is directed to improve roads, bridges and expand transit, instead of highway expansion.

Although some leading Democrats support a gas tax increase in the next surface transportation reauthorization, U.S. Secretary of Transportation Ray LaHood, who testified at a hearing Tuesday, confirmed that the administration does not support any increase in the gas tax.

With expected shift to more fuel efficient vehicles, it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve and maintain nation’s surface transportation infrastructure.