Ballot Question One: Does the Yes Vote Change My Commute?
Yesterday, Massachusetts voters repealed automatic gas tax indexing by a close margin — 52 to 48 — dismantling a link between the gas tax and Consumer Price Index. In the coming years, gas prices will no longer increase automatically with the rate of inflation. That will take a vote from the legislature.
The Numbers
Massachusetts average gas price is $3.061 a gallon. In Boston, it’s $3.083.
The current tax rate without indexing is 44.9 cents — 18.4 cents for the federal government and 26.5 cents for the state. For the average once-a-week, 15-gallon fill-up, drivers spend $6.73 in taxes. That adds up to $349.96 a year, far more for SUVs.
Though the state raised the tax by 3 cents last year, gas indexing would have taken effect in 2015. Inflation rates change every year, so no one can predict exactly how much drivers will save from the repeal. Even an increase by pennies per year can add up quickly.
Before the 3 cent increase in 2013, the gas tax was set at 21 cents a gallon in 1991. According to MassLive, if indexing had been put in place then, you’d currently spend 16 cents more per gallon — 58.2 cents, or $70 more a year on the gas tax.
The Meaning
Amid all these numbers, the simple truth is: this repeal doesn’t mean taxes will decrease. Legislators get the vote, but they can vote to raise the tax. Fuel consumption could change, but typically states increase gas taxes at a lower rate than inflation.
Opponents of repealing the law, including The Committee for Safer Roads and Bridges, said the automatic gas tax increase was necessary for funding Massachusetts roads and bridges, which they called a “public safety crisis.’’ State Transportation Secretary Richard A. Davey said the law would have provided $2 billion in long-term funding for fixing potholes, bridges, and highways.
Critics considered the automatic gas tax indexing ‘taxation without representation.’ In the long run, whether drivers save from the repeal — or end up spending more on run-ins with potholes — remains to be seen.
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