via Maclver Institute by Matt Kittle
State Rep. Joe Sanfelippo argues the state doesn’t need to raise its gas tax to fund its transportation needs. Instead, Sanfelippo proposes transferring a portion of the revenue generated from the sales tax on the sale of motor vehicles and related parts and services into the transportation fund. Currently, Wisconsin’s 5 percent sales tax goes to the general fund — including the estimated $1.03 billion annually in state sales and use tax collections from automobile and vehicle-related sales. Sanfelippo’s plan would ultimately transfer half of sales tax revenue from auto sales into the transportation fund, but gradually over the course of 15 years. In the first fiscal year, 2019-20, the amount would be 10 percent of the targeted sales tax revenue, rising to 15 percent in 2020-21, 20 percent the following year, and then more gradually to 50 percent by 2033-34. The proposal, in the first few years, would generate considerably less revenue for transportation than Evers’ budget calls for. It would bring in an estimated $103.5 million in the first year, $155.3 million in the second, and $207 million in the third year, according to a Legislative Fiscal Bureau memo.
Sanfelippo joined us this morning.