W.Va. gas tax collections down as drivers cut back

CHARLESTON, W.Va. (AP) — High gasoline prices may be cutting into West Virginia’s pool of money for highway repair and construction.

West Virginia motorists are paying an average of $3.93 a gallon for regular gasoline this week, the fourth highest in the country behind Alaska, Connecticut and New York, according to AAA’s Daily Fuel Gauge Report.

Of that amount, the state collects 32.2 cents per gallon in taxes for the state Road Fund.

Last month, those tax proceeds totaled $30.5 million, which is $2.35 million less than projected and a drop of about 4 percent over collections in April 2007, Tax Commissioner Virgil Helton told the Council of Finance and Administration during legislative interims Monday.

A year ago in April, the gas tax generated $31.87 million.

“The price of gasoline in the last two or three months has caused consumers to change their driving habits to the extent they can,” he said. “You’re seeing less gas consumed.”

The gas prices are also affecting West Virginia Turnpike toll collections, he said, which were down about 5 percent in March and April compared to the same months the previous year.

Senate Finance Chairman Walt Helmick noted that if the trend continues, it could have disastrous effects on the state Road Fund, which relies heavily on gas tax collections. The Pocahontas County Democrat suggested that the Legislature focus now on alternative ways to finance highway construction.

“We can’t wait until next year to say ’Where are we going to come up with another $40 million to $50 million for our road-building costs,”’ he told the council.

The projected gas tax collections for the 2008-09 budget year total $380 million, which accounts for 60 percent of the state’s share of the Road Fund. That amount is only a fraction of the more than $25 billion officials estimate is needed to complete the state’s priority list for new highway construction projects.