Statement By Assemblyman Marc Butler (R,C,I - Newport) Regarding Passage of Gas Tax Cap

May 17, 2006

I am pleased that we had a second chance to do the right thing on the gas tax cap. On April 11th , my minority conference offered an amendment to cap the sales tax at $2.00 per gallon, but it was rejected 64-77. I am pleased that we convinced enough of my colleagues on the concept that the state should not be benefiting from a tax windfall on the backs of motorists. While this is a short-term relief measure that offers modest savings to motorists, it is a step in the right direction. However, we need to do more. What we need to do next is create an Alternative Fuel Incentive Fund to accelerate the use of alternative energy fuels such as ethanol and bio-diesel.

Accelerating the transition to alternative fuels would lower fuel costs through decreased demand for gasoline as well as provide for a cleaner environment, more agricultural and manufacturing jobs, and increased national security through greater energy independence.

Under the Assembly minority bill, the Alternative Fuel Incentive Fund would be paid for by half of the remaining sales tax revenue on gasoline and would provide tax credits, grants, investments and other incentives to encourage ownership of hybrid and flex-fuel vehicles and the building of alternative fueling stations and refineries.

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