How I wish I could be in Aberdeen to join Ken Santema at the Legislative crackerbarrels! My Libertarian blogospheric colleague is providing excellent coverage of Legislative issues. Yesterday he got hold of a useful handout from Senator David Novstrup (R-3/Aberdeen) comparing the costs of the competing road-tax-and-fix bills proposed by Governor Dennis Daugaard and by the interim Highway Needs and Financing Committee:

Comparison of Daugaard and Interim Committee Road Tax Proposals, distributed by Sen. Al Novstrup, published by Kan Santema, SoDakLIberty, 2015.01.24

Click to embiggen—Comparison of Daugaard and Interim Committee Road Tax Proposals, distributed by Sen. Al Novstrup, published by Kan Santema, SoDakLIberty, 2015.01.24

The immediate bottom line shows the Governor's proposal imposes half the tax burden of the committee's plan, $51 million versus $101 million, largely by leaving out the 3% wholesale fuel tax.

But remember, that's just in the first year. The above comparison does not note the increasing revenue that will come on the motor fuel tax line from Daugaard's proposed ongoing annual two-cent increase, which far outpaces the increase proposed by the interim committee. The 3% wholesale tax in the committee proposal may provide more revenue, if gasoline prices do what we'd expect and rise over time. But remember: after the 1986 oil price crash, gasoline prices remained remarkably flat through the 1990s. The wholesale tax doesn't guarantee more revenue; Daugaard's plan does.

Of course, as of this weekend, we still don't have the Governor's exact plan. The interim committee's plan was the first bill filed for the Senate; the Governor's plan has not yet been filed as a formal bill.