Patrick wants gas tax tied to inflation

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Patrick wants gas tax tied to inflation

Would mean small increase in tax this year

Updated: Friday, 18 Jan 2013, 7:22 PM EST
Published : Friday, 18 Jan 2013, 5:00 PM EST

HOLYOKE, Mass. (WWLP) - Starting this summer, you could be paying an extra half penny per gallon at the pump.

Governor Deval Patrick wants to tie the state's gas tax to inflation. That would mean that the current 21 cent gas tax would go up about half a penny per gallon, starting in July.

Under the proposal, all of the state sales tax revenue would go to transportation and infrastructure. The tax, along with tolls and Registry of Motor Vehicle fees will fund an estimated $1 billion dollar per year gap in needed transportation improvements.

The Governor revealed this plan along with a change in sales and income tax Thursday in his State of the Commonwealth address. He proposed an increase in the income tax and decrease in sales tax.

Margaret Brown of Holyoke told 22News that changes are difficult, but this time are necessary.

“I think that we need to raise more revenue. I'm not sure if that's the best plan or not, but it's a step forward,” Brown said. “Considering that the infrastructure needs so much help, perhaps we still need the sales tax as well.”

It's estimated the gas tax tied to inflation will generate about $13 million in new revenue next year, and $118 million by 2021.

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