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News ReleaseJune 8, 2015
La. drivers pay $1,000 premium to get $50 tax break

Louisiana drivers save about $50 a year in lower gasoline taxes, but the low level of transportation funding from that tax creates road problems that are costing those drivers more than $1,000 extra a year, according to federal testimony from the head of Louisiana's top transportation advocacy group.


Kenneth Perret

Louisiana's 20-cents-per gallon gasoline tax is one of the lowest state gasoline taxes in the nation, about 10 cents lower than the national average, said Kenneth Perret, president of the Louisiana Good Roads and Transportation Association. That difference saves the average driver about $50 a year in state taxes, compared to drivers in other states.

"The great irony is that, in exchange for saving $50 a year in lower taxes, the average Louisiana driver pays more than $1,000 extra a year in higher insurance rates and extra car repairs," Perret told the U.S. Senate Subcommittee on Transportation and Infrastructure. "That doesn't even address the value of time and fuel wasted while we're sitting in congestion, thinking about the $50 a year we are saving."


The complete video of the field hearing, which took place June 1 in Baton Rouge, can be viewed here. The field hearing portion of the video begins at 38:15, after a town hall meeting. Other testimony at the hearing included U.S. Senator David Vitter, DOTD Secretary Sherri LeBas, Port of South Louisiana Deputy Director Roy Quezaire, and Joey Coco of the Louisiana section of the American Society of Civil Engineers. The field hearing was held to investigate the need to invest federal funding to relieve traffic congestion and improve state and local roads and bridges.

Louisiana Good Roads and Transportation Association is a statewide, non-profit organization dedicated to fostering and promoting a program of planning, design, construction and maintenance of an adequate transportation system, sufficiently financed, which will conveniently and safely serve the transportation needs of the people of Louisiana.

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Mark Lambert