Gas tax increase of 4.9 cents to go into effect Friday

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SALT LAKE CITY (AP) — Utah’s first gas tax increase since 1997 will take effect Friday, adding 4.9 cents per gallon of gasoline and diesel.

The Salt Lake Tribune reports (http://bit.ly/1kqnTib ) that gasoline retailers have not said whether they will pass the tax increase on to consumers immediately.

The State Tax Commission estimates the increase will generate about $76 million a year, with 70 percent earmarked for highways and 30 percent going to cities and counties for local roads.

The hike is part of a larger law that allowed counties to put Proposition 1 on the ballot to raise sales taxes for transportation. That proposition passed in 10 counties and failed in seven.

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