/Like everything else, state’s transportation system likely to suffer due to COVID-19

Like everything else, state’s transportation system likely to suffer due to COVID-19

Mississippi’s 18.4 cent per gallon motor fuel tax, primarily gasoline, is its primary source of revenue. It is reasonable to assume that Mississippians don’t drive as much, since the state is under shelter-in-place orders. People who don’t drive are less likely to buy gasoline, which results in lower revenue from the gasoline tax. It is possible to conclude that the infrastructure of the state is not being damaged by people not driving as often. Many argue that roads and bridges were already in poor condition, which a lack of traffic cannot repair. The large semi-trucks, which do the most damage, are still driving up and down the roads, delivering essential supplies such as food, toilet tissue, and other necessities. However, it can be difficult to verify that toilet paper was delivered by simply looking at the shelves. In the 2019 fiscal year, the gasoline tax brought in $305.5 million to the Department of Transportation. The current 2020 fiscal year saw slightly higher collections from the motor fuel tax than the previous year before COVID-19 brought a lot of state activity to a halt. Travel will decrease until the coronavirus can be contained. COVID-19 has a tragic impact on almost every aspect of our lives, so it shouldn’t surprise that it is affecting transportation. The agency’s executive director Melinda McGrath stated that the Mississippi Department of Transportation faces uncertainty because of the COVID-19 pandemic. There is less demand for fuel because residents are sheltering in places to slow spread. We expect fuel tax receipts will decrease in the next few months as a result. But, highway projects that are ongoing will continue as planned and MDOT will make efficient use of all available resources.” There have been ongoing discussions for about a decade over how to increase transportation funding – at both the local and state levels. The Department of Transportation stated that it requires an additional $400 million per year to maintain and repair its infrastructure. According to a recent report, the state has approximately 30,000 miles of highway. About 11,000 of these are in dire need of repairs. There are also 5,700 bridges in the state with around 900 of them under commercial traffic restrictions. The nation’s third-lowest gasoline tax, at 18.4 cents per gallon, is Transportation Department officials stated that the tax generated almost the same amount as when it was first enacted in 1987, before the pandemic. The COVID-19 exemption has not been taken into account. In the meantime, travel on state-maintained roads has increased by twice as much and construction costs have tripled. According to Department of Transportation statistics, the cost of materials and construction for highway maintenance has increased 463 per cent since 1987 when the gasoline tax was implemented. Opposing increasing the gasoline tax, the state’s political leaders approved other revenue sources for the Department of Transportation in a 2018 special session. They enacted a lottery, with the first $80million of the revenue going to state infrastructure. Additionally, the revenue from sports betting, which is likely to be less than $10 million per year, was diverted towards transportation. The lottery revenue dropped dramatically during the economic slowdown. Because there are no sports to wager on, and the casinos where legal bets could be placed, sports betting is not possible. Fix MS Roads is a group of road builders, asphalt businesses, and others who argue that lawmakers should reconsider raising the gasoline taxes. The current price per gallon for gas is the lowest in many decades. Fix MS Roads stated in a press release that the lower price of gasoline would make the increase to the gas taxes less burdensome for Mississippi drivers and would help ensure that the state is ready to meet the needs of its residents. It is unlikely that lawmakers and the governor will consider raising taxes despite low gas prices. Tate Reeves might consider raising taxes in the current recession. Many Republicans are opposed to any attempt to increase taxes. Many Democrats say they won’t support raising gasoline taxes. This would be a significant increase for low-income Mississippians. It comes after the passage of more than $700million in tax cuts in recent years. The bulk of these tax cuts are being phased into large corporations. They believe that corporate tax cuts must be reversed._x000D