Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-25
GASOLINE REVENUE
DIVERSION SHOWN
Reports Reveal Extent to
Which States Have Shifted
Tax Money.
Epecial Dispatch to The Star.


NEW YORK, February 25--The
American taxpayer, whether or not he
is an owner of motor car will be in
terested in the sharp comment and the
convincing statistics that were present.
ed both by the American Petroleum
Institute and the official organ of the
Standard Oil Co. of New Jersey indi-
eating the extent TO which gasoline
taxes are being diverted from their
primary purpose of highway develop
ment.
It is shown that in the past five wears
nearly $90,000,000 of the gasoline taxes
collected have been employed for public
improvements as far removed from road
building as the erection of public audi
forums. the support of fish hatcherles,
the building of schools and sea walls,
the elimination of grade crossings the
reduction of property assessments and
for port expenses. One Southern State
now has in contemplation the diversion
OF portion of Its gasoline tax for
meeting the demoralized tax conditions
in number of municipalities and coun-
ties in the commonwealth. .,
Diversion Of Taxes.
In 1927 and in 1925 Is per cent of
the net return from gasoline taxes in
this country was diverted from its orig
inal purpose. In 1929 the amount was
10 per cent and in the first half of 1880
at the annual rate OF II per cent. In
1929 the State of Florida, according to
the American Petroleum Institute fig
ureS. used 40 per cent of its gasoline tax
for purposes other than highway i'm
provement. In the same year the
amount diverted by the State of Texas
was % per cent and by Ohio 10 per
cent. These ratios for the first half
of 1890 were the same for Ohio and
Texas, but dropped to % per cent in
Florida. In Georgia. for the same pc
riod, they were II per cent.
The Standard Oil of New Jerseys Of
fetal organ, the Lamp. discusses the po-
liCcal phase of this diversion of taxes
and also the growing irritation of the
automobile owner who is today paying
a higher proportion of tax to gasoline
costs than ever before.
The Lamp points out that there is no
serious objection on the part of the
motoring public to the collection of
reasonable gasoline tax when this tax
is expended on highway improvement.
However, it says: There is an inherent
fault in the gasoline tax which is now
becoming widely recognized. That is its
susceptibility to political raids. There
are in evidence in many States today
sinister plans for diversion of part of
the revenues provided by motorists to
purposes far removed from the original
object of the levy. The politician has
found in the gasoline tax the easiest
method ever discovered of taking toll
from the citizens in painless way"
Average Prices.
there were no gasoline taxes service
station prices in this country averaged
25 cents a gallon. In the first month
of this year the average price, before
taxes, was 1853 cents a gallon. Adding
gasoline taxes, the finished price to the
motorist in this recent period was 1881
cents. Consequently, the purchaser has
not felt the new charge as much as he
would if wholesale prices had held where
they were before the tax came into be-
ing, but he is beginning TO show alarm
lat the tendency to increase the tax
per gallon far out of proportion to the
selling price of motor fuel, and by the
political fingers itching to dip into the
collections for other purposes than road
work"
Some of the suggestions that are now
receiving consideration in different
States for diversion of part of the
gasoline tax are given in the Lamp to
illustrate what is going on over the
country. In Utah it has been proposed |
that portion of the tax be placed in
the general revenues fund of the State. |
In Georgia it is to be applied to a re-
duction in property assessments. In
Louisiana. where the rate has been adj
vanced from cents to cents a gal
Ion, the additional amount levied is for
the purpose of funds for highways, |
schools and port expenses. Maryland
earmarks part of its collections for the |
elimination of railroad grade crossings. |
and Mississippi returns cents of the 5
cents to any county building a sea wall. |
New Mexico allocates small part of its
taxes for fish hatcheries.
Revenue Increases.
In the past 10 years, during which the
gasoline tax has been adopted by prac-
tically all of the States, the annual
revenue has increased from less than
S5o00000 to over S525 100000. There
is the additional levy which is imposed
by municipalities. Present plans, if car
ried into effect. will bring about in
creases in Is States. with one State
considering a gasoline tax of as much
as II cents a gallon.
Copyright, 1917