The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1924-03-28
PROPOSED Gas
TAX EXPLAINED.
NICKELS AND DIMES TO MAKE
UP $4,000, 900 FUND
YEARLY.
Gas Tax Hishlights.
Fair and equitable

Thirty-six states have it and like
it
Takes only nickles and dimes now
and then
No lump sum or year levy to be
paid in advance
Collected with less expense than
any other taxes
Only way to collect from tourists
for highway use
Will produce nearly $4,000, 900
of road funds annually
The Miner, publishes here an out
line of the "gas tax" to be voted
on at the Minnesota election next
November. It will give readers the
facts about plan already widely
discussed. The outline follows:
Lawmakers Fix Details.
The gas tax question whether
the state shall be authorized to put
road tax on gasoline-will be vot-
ed on at the Minnesota election next
November. Its adoption requires a
majority of all votes cast, and not
to vote at all will be the same as
voting against the proposal. If
adopted, the constitutional amend
ment will only authorize the state
legislature in its discretion to place
road tax on gasoline. All details
as to when, how and what tax, il
any, will be levied will be for the
state legislature to determine.
Alternatives Numerous.
The legislature will have full con-
troll of rates under the tax, if adopt
ed, as it now has over motor veh-
icle taxes. 1t may put .the gas tax
at / or 2 cents or even cents a
gallon. 1t may be made an addi-
tional tax Or it may be wholly OF
partially offset by reduction of the
motor vehicle tax. All those and
other details will be left to the Leg
isature.
Whether a ags tax could be made
to entirely take the place of the
present tax is questioned, however
because the latter is lieu tax on
cars and trucks and already lower
than taxes on other classes of prop.
erty, and many expensive but little
used cars might then virtually es-
cape taxation.
Gas Tax Cost Per Mile.
A gas of cents a gallon is being
talked in Minnesota. That would
be at the rate of one-tenth cent a
mile on cars going 20 miles on a
gallon, less than one-eighth cent al
Is miles gallon, and one-fifth cent
at 10 miles to gallon.
Figured on the common average
of 5000 miles a year, it would
take So from the owner of the cal
running 121s miles on gallon and
SIS year from the owner running
20 miles on a gallon, and SO on.
Yield 81, 0oo, 900 a Year.
A 2-cent gas tax in Minnesota, il
is carefully estimated, would pro.
vide nearly s4,000,000 a year fol
highway improvements. That sum
will pay for nearly 1000 miles OF
dirt roads, FOR $40 miles of grave
roads, or for nearly 125 miles OF
concrete paving, the right-of-way
grading and all other items included
in each instance.
Used to complete partially i'm.
proved roads the sum would be ex-
tended over still larger mileages
and the showing would be more i'm
pressive.
Figure Individual Gains.
A 2-cent gas tax, costing the av-
erage car owner less than an eighth
of cent mile, would return bet
ter roads reductions of car depre-
citation, repairs, tires, gasoline and
other car expenses.
The cost of running the average
car is IL cents mile on dirt roads,
81 cents a mile on gravel roads
and z cents mile on paved high
ways.
From the foregoing rates, car
owners may easily figure their own,
Individual car apkeep savings from
highway improvements.
Nicl1le and Dime Payments.
Gas taxes are collected in nickles
and dimes-at the filing station and
on only the quantity put into the
tank at the time. Ten cents would
be added in the price of S gallons
and 20 cents on 10-gallon lots at
the 2-cent rate. The wholesaler
pays the tax on car shipments into
the state and adds it to the price
to the retailer who passes it on to
the consumer. Thus the collection
cost is low-reported about a tenth
of one per cent elsewhere.
Paid in this manner instead of
lump sum sor in advance, the gas
tax is hardly felt, its advocates say.
and so is called painless and popu-
lar".
36 States Have Gas Tax.
.Thirty-six states now have the gas
tax and the other twelve, Minnesota
included, are considering its adop-
ton. 1t Is reported so satisfactory
in 10 states first to adopt it as to
result in shifting collection of big
ger shares of road funds to the gas
tax
1t is the fairest tax, is the general
verdict. The car going $4,000
miles pays ten times as much tax
as the car going 5000 miles, if both
give the same mileage per gallon
The heavy cars, buses and trucks
pay more than the light ones. and
so forth.
$500, 900 from Tourists.
The gas tax is the only method
yet devised to allow tourists to pay
toward the expense of the roads
they use. One estimate is made
that a 2-cent gas tax in Minnesota
next year would add $1,000, 900 OF
tourists money to the state highway
fund. A very conservative figure
is 100000 a year.
Indications are that unless the
gas tax is voted in November, Min
nesota may be the only state in the
union without gas tax. It's car
owners travelling in other states then
will he having foward hetfar roads