Gas taxes still best way to pay for infrastructure

Most Nebraska lawmakers and residents aren't in favor of raising taxes of any type, but there are times when we have to bite the bullet.

Efforts should continue to find efficiencies, and no one, especially McCook residents, wants to pay more for gasoline, but that looks like the fairest way to pay for repair of bridges and roads.

The Revenue Committee voted 5-2 Wednesday to send to the full Legislature a 6-cent increase in gasoline tax, implemented over the next four years.

That would push Nebraska's total gas tax, already higher than all adjoining states, to 31.6 cents per gallon, while generating $19 million a year.

That's the state's portion of the fuel tax; we're already at 44.90 cents per gallons with state and federal taxes now.

State Sen. Jim Smith of Papillion sees it as a "user fee" for motorists, a better alternative than using state's general fund or issuing bonds. It would also reduce pressure on counties that use property taxes to pay for bridge and road repairs, certainly welcome in Red Willow County.

Fuel taxes aren't the cash cow they once were; hybrid and electric cars, as well as more efficient conventional vehicles have all conspired to reduce the amount of fuel ticking through the gas station pumps.

Nebraska responded by diverting a quarter-cent of Nebraska's 5.5-cent sales tax to roads until 2023, estimated in 2013, when it went into effect, to bring in $65 million a year.

That's not an overabundance of funding; the state will need an estimated $13 billion or so over that period just to keep highways in good repair.

Roads are a big item for governments, but they're certainly not the only piece of infrastructure of concern.

Many water systems, the older parts of McCook, for example, are living on borrowed time, and will have to be updated in the near future. Sewer and water are "enterprise funds," supported as much as possible by fees charged to users, which is the fairest possible tax.

No, none of us like paying more for gasoline, especially if a large fraction of the bill goes to the government.

Ideally, income from fuel tax should increase as more vehicles use Nebraska roads and bridges, automatically providing more funding as infrastructure wears out.

That doesn't always work out, however, as some repairs are necessary just because of the age of the roads or especially bad winters. And, as mentioned above, more efficient cars and slowing economies can pinch the revenue stream.

But if there's a fairer way to pay for road and bridge repairs, we haven't yet found it.