From AP - News Headlines -

Urbana Motor Fuel Tax Passes, Will Take Effect Oct. 1

It will cost an extra 2-cents a gallon to buy gas in Urbana, beginning October 1st.

The local motor fuel tax proposed by Mayor Laurel Prussing last spring was approved by the city council Monday night on a 4-to-3 vote. The tax going towards street maintenance and safety will generate $340,000 annually. An escalator of 0.4 cents will kick in each July for three years, bringing that total to about $544,000 dollars by 2013, but the gas tax will be up for review each of those years. The vote among council members mirrored that of a study session a week earlier.

Alderwoman Heather Stevenson has always opposed the plan, saying this may actually mean she buys her gas and does her shopping elsewhere.

"If I'm in Champaign, I'm going to purchase items over there that I possibly could purchase in Urbana." said Stevenson. "So I think it's not about traveling a mile to save money on gas, it's about saving money... and spending money - tax dollars - in another area."

Stevenson says the council needed to explore alternatives to the tax to pay for road improvements. Urbana resident Bob Bosshart opposed it, saying it will hurt the middle income during the recession.

Alderman Dennis Roberts supported what he calls a 'gentle tax' but admits passing any off on residents during a recession is tough.

"It'll be reviewed, and it is important to be self-sustaining and take care of your own streets as a municipality." said Roberts. "But I also realize that all taxes are a burden to people who are using them, so this is not the easiest vote."

Mayor Laurel Prussing says other towns enacting the tax hadn't seen an increase in gas prices when compared to neighboring communities. She proposed the tax last spring because she says state motor fuel tax dollars haven't increased in 20 years, while the cost of road repairs have more than doubled.

The gas tax also earned the approval of AFSCME Council 31's Michael Wilmore, who says union members from Urbana's Public Works Department work hard to make the city a safe place to live and travel.

Categories: Economics, Government, Politics