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Follow VPR's statehouse coverage, featuring Pete Hirschfeld and Bob Kinzel in our Statehouse Bureau in Montpelier.

Compromise Struck On Gas Tax

The Vermont House this morning approved a compromise transportation bill that will raise gas and diesel taxes on May 1.

House Transportation Committee Chairman Pat Brennan, R-Colchester, said the bill strikes a middle ground between the House and Senate versions.

“With a little back and forth I think we’ve come to a place where we can actually make this tax package a little more palatable, if that’s possible,” he said.

The legislation raises gas taxes by 5.9 cents in May, while diesel taxes will increase by 2 cents in July. In July 2014 the tax on diesel goes up another penny, for a total increase of 3 cents.

The Senate is expected to agree with the changes. The goal behind raising the taxes was to match $56 million in federal funds targeted for road and bridge repair.

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