Our view: City’s gas tax idea not ready for prime time
Published 3:00 pm Monday, April 8, 2024
City leaders are contemplating placing a gas tax before voters some time in the future, and while they deserve credit for planning ahead, gaining approval for a new levy is going to be a big lift.
The idea, of course, is to generate more revenue for the city, but the last time city leaders tried for a similar tax, in 2015, voters stymied the effort. City voters shot the proposal down by nearly a 2-to-1 margin.
According to city figures, an average of 8.6 million gallons of gas and 7.6 million gallons of diesel are sold in La Grande annually. A 3 cent a gallon gas tax would be about $400,000 in revenue, or about a 33% increase in funds to overlay streets. A 3 cent gas tax would mean drivers — with a 20-gallon tank — would pay an extra 60 cents per fill-up.
City leaders are pushing the theory that a good share of the gas sold in La Grande is bought by travelers or from drivers from neighboring communities, so about half of the anticipated revenue from a gas tax would be paid by nonresidents.
That’s a good argument as far as it goes but it doesn’t go far enough. Especially if you are a local resident who is living on a fixed income. For those in that situation, even a slight increase in the amount of money spent each month could be a big deal.
Robert Strope, La Grande city manager, has suggested that a gas tax could carry a sunset clause, a defined time period when such a levy would end. That’s a good idea as well but it, too, stands on a rickety foundation. Anyone who is aware of how government works understands that once a tax is created and a funding stream utilized, it is very difficult to turn that faucet off.
City leaders also believe an education program on the proposal would be a good route, and we don’t disagree.
Councilor Corrine Dutto used the example of the La Grande School District’s recent successful effort to pass a school bond. The district spent time delivering information on the proposal to patrons and many see that effort as one reason the bond passed.
In the end, though, the gas tax idea needs a lot more study and evaluation by the city and voters before it is even close to being ready for prime time.