AP: Corbett to unveil road plan

The Associated Press

January 17, 2013

HARRISBURG ?? Gov. Tom Corbett is preparing to unveil a transportation plan funded primarily by nearly $2 billion a year in new taxes on gas stations, two people who learned details of the plan told The Associated Press on Wednesday.

He will announce the fine points of the initiative next week, the two people told the AP.

Corbett spokesman Kevin Harley said the tax would not be paid directly by consumers.

The plan would involve removing a statutory cap on the oil company franchise tax. The per-gallon tax is applied up to an average wholesale price of $1.25. Officials say that could produce $1.9 billion a year.

In November, Corbett said prices at the pump are driven by multiple factors, so raising the cap on the franchise tax would not necessarily increase prices at the pump.