Tax deduction for tolls in West Virginia

A bill signed into law in West Virginia provides for a deduction of up to $1,200 from adjusted gross income for state income tax for E-ZPass transponder tolls on the West Virginia Turnpike. The deduction is only available to private persons not businesses.

Justification for the tax deduction according to sponsors is to "alleviate the financial burden" of tolls. It would "help every West Virginian who depends on the road for their livelihood and day to day operations," says the governor Joe Manchin (Dem).

The only other state that provides for a personal tax deduction on tolls is Massachusetts which allows up to $750 to be claimed on Fast Lane transponder account payments.

Tolls on the West Virginia Turnpike have been frozen since 1989 since which time the purchasing power (as measured by CPI) has declined 38%, and personal incomes have doubled - even in West Virginia.

The Republican leader in the senate Don Caruth attacked the tax deduction as a means of weakening resistance to toll increases.

Let's get this straight. The Republican leader favors resistance to toll increases even though:

- the tolls haven't changed for 17 years during which time the price of most things has risen over 60% and incomes nearly 100%
- Republicans are supposed to be against price controls and in favor of markets
- the Turnpike is falling apart for lack of maintenance revenues
- they've had to cancel plans for third laning in overcrowded stretches for lack of an income stream against which to borrow
- deterioration of the state's major highway threatens to erode the state's competitiveness and quality of life
- it will erode the attractiveness of West Virginia as a place to visit and do business
- Republicans are supposed to favor user fees over taxes
- the only alternative to toll increases is higher taxes and Republicans are supposed to be ag'in them

The case for substantial toll increases was made in a study commissioned by the governor from the Public Resources Advisory Group and published in February - see http://www.tollroadsnews.com/node/1796

TOLLROADSnews 2007-09-20