Imperial Valley press., 1925-01-26
THIS GASOLINE TAX


FROM Oregon comes the astounding suggestion
that the state gasoline tax of three cents gallon be
doubled-lnCreaSed to six cents gallon. Oregon, it
appears, funds for highway construction,
and as IN the past those desiring such funds look
the motorst and his gasoline convenient source
Of revenue.
The gasoline tax originated in Oregon in 1919,
at cent gallon The next biennial session of the
legislature-In 192I-dOubled it, making cents,
and the next legislature-that of 1923added another
cent, for total Of three. The legislature meets
again, and once again will consider taxation.
What has happened in Oregon has happened else
where the Pacific coast. California adopted
gasoline two years ago. The California legislature
is again in session. and it is proposed that the tax be
increased. In 1921 the state of Washington adopted
one-cent tax and made it two cents two years later
Nevada adopted two-cent tax in 1923, and is
sidering an increase Arizona decided on one-cent
in 1921. and made it three cents in 1928.
No opportunity has been lost in any of these
to increase gasoline taxes The twoyear intervals be-
tween revisons upward presumably exist only because
the various legislatures meet every two years. 1t is
interesting to contemplate how high taxes might be II
legislatures should meet annually.
The trend of events clearly indicates the danger
Gus lengths to which this business of gasoline taxation
may be carried, and the great burdens which may be
LOADED upon the already heavily taxed motorist and
upon the marketer of gasoline.
The original discussion OF a California gasoline
tax two years ago concerned one cent gallon but
when the law adopted the bill read two cents
Now three cents is proposed. There be guaran
tee that future legislature will make it four
cents, five siX-tha is, guarantee except the
fact that the motoring public is longer apahetic
about its and that henceforth it will register
its objections not only against increase OF two or
three cents per gallon but against any increase what
ever
It has been estimated that some S300000,000 is
needed for all purpoSes-rOughly, one-thlrd to the
counties onethrd for maintenance Of old roads by the
state and one-third to the state for roads-for
period of years. This is average Of S3OOO00OO
annually. Present revenues about S21,OOO,OOOO.
1t has been stated that there must be new taxation
for l
cent to the gasoline tax, $500 the registration fee,
and increasing the truck surcharge by sc per cent
enough money can be raised
1t would indeed seem apparent that to bring S2l,-
100000 up to S30,000000 would demand increased tax
alton; but this actually does not follow. An impor-
factor has been left out of consideration 1t IS the
great increases in which will come from the
normal increase in registration of automobiles and the
consumption of gasoline.
The increase in motor registrations during the last
five years has averaged than p per cent year
1t is believed that 1925 will gasoline consumption
in California 20 per cent greater than in 1924 due
not only but also to an increase IN travel
which was greatly curtailed by the foot-and-mouth
disease restrictions during 1924 The next year
1926 should show further increase of 10 per cent,
and the two following years 10 per cent each.
If the percentages recited above applied to
existing revenues under existing laws, with no new
taxes the total of money paid by the motorists OF
the state between now and 1935the end of the pro-
posed ten-year period-wll be more than S40OOO000o
which is considerably in Of the sum SAID to be
needed
If the rev taxes are adopted-one cent more on
gasoline $500 more registration, and tWO-thlrds
more on weight fees-the total applying the same per-
centages of increases will be between 5000 100000 and
These are huge sums, all coming from the motor
st and they come top Of previous great increases
Prior 10 the present law motorists paid state taxes Oh
between S9O200OO and $10000,000 year; in 1924
they paid S210C00O0; this year the bill WILL be So
100000 OF more next year, ii the new taxes are m
posed the will be around S35,O0O00o