Gas Tax To Generate Over $1 Million

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Decatur – Drivers could pay about a dollar more for every 20 gallons they purchase at the pump in Decatur.

The City Council is expected to vote this evening on establishing a 5 cent a gallon gas tax and a 1 cent a gallon diesel fuel tax.  The increase comes as state and federal gas tax revenues fall as cars become more fuel efficient.

City Manager Tim Gleason told WAND’s Doug Wolfe he believes the city will collect an extra $250,000 to $300,000 a year per penny of tax collected.  That would provide Decatur an additional $1.25 million to $1.5 million on an annual basis.

The use of the money from the tax will be restricted.  It can only be used on residential streets and roads.  Not for other transportation related projects.

If approved by the council the new gas tax will start April 1st and will begin impacting road construction in 2017 and 2018.    

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