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Oklahoma lawmaker plans new fuel tax bill

A state senator plans to draft a bill next year that would allow Oklahoma voters to decide whether to raise the state’s fuel tax to help fund road repairs.

Sen. Robert Milacek, R-Enid, told The Associated Press his proposal would be slightly different from the bill that stalled in a House-Senate conference committee last session.

The new version would include a gradual increase in diesel fuel and gasoline taxes, just like the earlier bill.

Drivers pay 14 cents a gallon in tax on diesel and 17 cents a gallon on gasoline.

Milacek’s proposal would phase in the tax increases, with diesel taxes hitting their highest level July 1, 2007, and gasoline taxes reaching their top level July 1, 2006.

When fully implemented, the higher fuel taxes would generate $145 million a year, Milacek said.

Unlike last session’s measure, the new legislation would require all revenue to go to the state’s roads and bridges, The AP reported.

The previous version would have given some of the tax money to railroads, airports and waterways.

Rep. Larry Ferguson, R-Cleveland, House sponsor of HB1385, said last session he pulled his bill in part because the Oklahoma City and Tulsa chambers of commerce were considering a road improvement campaign for the state.

The two groups haven’t dropped the idea for the proposal.

Ferguson also said he dropped the proposal because of debate about how new tax revenue would be spent.

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