News
02/06/07
Governor Proposes New Oil Profits Tax – P3 for Turnpike
This is different from the Oil Company Franchise Tax levied on motor fuel at the wholesale level. The governor's administration estimates these tax changes will yield a net revenue increase of $760 million per year. This revenue would be used to fund Pennsylvania's mass transit systems. Go here to view a copy of the Governor’s Press Release. (PDF 28KB)

Rendell is also proposing to lease or privatize the Pennsylvania Turnpike. The Rendell administration's preliminary estimates suggest the commonwealth could generate as much as $965 million per year.

TCI-PAC issued the following statement regarding the governor’s proposal.
  • The governor referred to his funding plan as “historic reinvestment in the Commonwealth’s transportation system,” and we thank him for bringing a significant proposal to the table.

  • It bears repeating that the Transportation Funding and Reform Commission’s recommendations, which are embodied in this proposal, DO NOT provide for any significant growth in the capacity of Pennsylvania’s highway system. Rather, it merely would repair PennDOT’s aging highway and bridge system, which now carries significantly more traffic than that for which it was designed. Our locally owned roads are also in need of additional funding.

  • We look forward to learning the details on the lease of the Turnpike, and particularly the assumptions behind the calculation of the $965 million return. That $965 million yield, divided by the rate of return (6 percent? 7 percent?), plus the existing Turnpike debt, equals the price for which the deal would need to be made.

  • Pennsylvania has an opportunity to craft a lasting solution to the transportation funding crisis and make a significant contribution toward stimulating economic development and improving mobility. We look forward to working with the administration and the General Assembly as this issue moves forward.