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Utah Gov. Approves Natural Gas Tax Increase

April 1, 2015

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Utah's Gov. Gary R. Herbert has signed a transportation infrastructure funding bill that includes increases in the state tax on natural gas and hydrogen vehicle fuel.

Under the legislation (H.B. 362), Utah’s current 8.5 cents per gallon equivalent tax on natural gas fuel will be increased by 2 cents on a yearly basis over a four-year period.

The legislation also establishes a state fuel tax on hydrogen that would start at 10.5 cents per gallon equivalent and increase by 2 cents per gallon equivalent annually.

The bill, which was recently passed in the Utah legislature, is intended to “address the state’s long term transportation funding needs,” according to a release from Herbert’s office. The Legislature last addressed transportation funding 17 years ago, the release added.

"A strong transportation infrastructure has played a critical role in our economic growth and it will continue to do so thanks to this bill," Herbert said.

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