Governor Oks bill revamping state gas tax

SALT LAKE CITY (AP) – Utah Gov. Gary Herbert has approved a bill that revamps the state gas tax.

The Republican governor signed the measure Friday.

The bill converts the current 24.5 cents per gallon flat rate to a percentage that could adjust with the price of gas, as House lawmakers had pushed for.

The rate would start at 12 percent. That’s the equivalent of a five cent increase from the current rate, something the Senate sought.

The proposal would also include provision for allows local governments to institute a 0.25 percent sales tax to help pay for their road needs.

Lawmakers estimate the change will bring nearly $25 million more in revenue to the transportation fund in fiscal year 2016, and by $75 million in fiscal year 2017.

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