The United States needs a substantial gas tax to stop funding
hostile petrostates, to curb greenhouse gas emissions, to bring dollars going
overseas home, and to provide the market signals for a cleaner, greener
transportation system. These are all high priority goals. Such a tax should be revenue
neutral for optimum political feasibility. It’s not about raising money but
giving market incentives.
But there are predictable foes. Here in Oregon, the Oregon Petroleum Association
is one. They represent gas retailers and wholesalers across Oregon. As they say (here): "Today
OPA has over 180 fuel marketer, dealer and associate members. OPA
members account for more than 65% of all petroleum products sold in Oregon." They are politically active. They have
been fighting local gas taxes as the Eugene Register Guard reported on 1/14/09
(see here):
SPRINGFIELD — It took less than 24 hours for critics
to emerge after the City Council on Monday announced that it may enact a 4-cent
gas tax increase.
Councilors said the raise — which would bring the
city’s gas tax from 3 cents to 7 cents per gallon — is the best way to save a
swiftly draining roadwork fund.
But on Tuesday, the Oregon Petroleum Association,
which represents gas station owners and wholesalers statewide, said it will
make sure any gas tax the council may enact will be put to a public referendum
in May.
The council will not vote on raising the gas tax
until after a public hearing next month. A 4-cent increase would make
Springfield’s gas tax the highest in the state; Eugene currently has the
highest at 5 cents.
Should the council enact a higher tax, the
opposition would have 30 days to gather 1,113 signatures from registered
Springfield voters favoring a public vote, Springfield city recorder Amy Sowa
said.
Local gas taxes are bad news for gas station owners
because they make the cost of doing business wildly different in every city,
and therefore are unfair, said Paul Romain, the executive director of the gas
dealers group.
“It presents a competitive nightmare of stations in
your area,” Romain said. “In (unincorporated) Lane county, a gas station owner
pays 5 cents less than a station in Eugene and 3 cents less than a station in
Springfield.”
Those stations that have to pay the tax still have
to keep their prices much the same as those that pay no tax, meaning they have
a far smaller profit margin, Romain said.
The mayor and councilors said they don’t buy that
argument.
“It depends on a lot of factors about how pricing
goes,” said Councilor Christine Lundberg, whose ward includes the ARCO station
at Gateway Street and Belt Line Road
that routinely sells some of the lowest-priced gas in the metro area. “You can
go to any number of gas stations, no matter where they are, and you find a
variety of prices.”
The council made it clear in Monday’s meeting that
it would roll back part of the local tax if the state Legislature provides
additional money for street preservation.
If more stable funding were found for city roads,
Springfield would not need a higher gas tax ordinance, Mayor Sid Leiken said.
“We’ve got to figure out how to solve this one on
our own,” he said. “It’s a tough one.”
That community members voted in favor of a gas tax
increase in a city-sponsored online poll shows that Springfield residents are
willing to ante up to preserve the city’s streets, he said. The poll was
unscientific and people could vote more than once.
A 4-cent increase would bring in $1.1 million a year
to Springfield’s street fund.
The statewide gas dealers group is experienced at
fighting local gas taxes.
It was closely involved in overturning the Eugene
City Council’s 2007 decision to raise the gas tax 3 cents, from 5 cents to 8
cents a gallon, in 2007.
Voters rejected the tax increase in a November
referendum.
However, the association last May failed to collect
enough valid signatures to reduce Eugene’s gas tax by an additional 2 cents a
gallon.
The association is working on a referendum against a
local gas tax ordinance in Pendleton. And it successfully campaigned for a
1.5-cent gas tax in the city of Tillamook to be referred to voters later this
year.
The lobbying group would rather see a set statewide
gas tax that would include a ban on cities and counties increasing the tax,
Romain said.
As for the Oregon Petroleum Association’s influence
on the 2009 legislative session, according to Oregon’s online ORESTAR, the OPA
PAC made the following legislative contributions during 2008 to legislative
candidates who won:
Friends of Dave Edwards (D) $500
Scott Bruun for State Representative (R) $2,000
Cliff Bentz for State Representative (R) $500
Peter Courtney for State Senate (D) $1,000
Friends of Ted Ferrioli (R) $1,000
Re-Elect Arnie Roblan (D) $1,000
Friends of Terry Beyer (D) $1,000
Friends of Jeff
Barker (D) $500
Friends of Tobias Read (D) $500
Friends of Bruce Hanna (R) $1,000
Friends of Bill Kennemer (R) $1,000
Friends of Jim Weidner (R) $1,000
Friends of Richard Devlin (D) $1,000
Friends of Rod Monroe (D) $1,000
Friends of Dave Hunt (D) $1,000
Friends of Tim Freeman (R) $4,500
George Gilman Campaign (R) $1,000
Friends of Dave Nelson (R) $1,000
Committee to Re-Elect Bob Jenson (R) $500
Committee to Re-Elect Greg Smith (R) $500
Committee to Elect John E. Huffman (R) $1,000
Friends of Richard Metsger (D) $1,000
Bruce Starr for State Senate Committee (R) $1,000