House-Senate Plan Would Raise $500 Million For Transportation

April 2, 2013 4:45 PM
House-Senate Plan Would Raise $500 Million For Transportation
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" BOSTON (CBS/AP) РThe Massachusetts House and Senate have agreed on a plan to raise $500 million to fund the state’s transportation system.

The plan announced Tuesday rejects a $1.9 billion revenue plan proposed by Gov. Deval Patrick that included a hike in the state income tax to pay not only for modernizing the state’s transportation system, but also for new education initiatives.

The joint House-Senate transportation financing plan announced Tuesday calls for a three cent hike in the state gas tax.

WBZ NewsRadio 1030′s Carl Stevens reports

Download: stevens-transportation-plan-wrap-2.mp3

Legislators believe it will raise $110 million this year. By January 2015 the gas tax would be indexed to inflation.

A $1 increase in the tax on tobacco, cigarettes, cigars and smokeless tobacco products is expected to raise another $165 million.

An expansion of the Computer Services Tax Code would bring in $161 million this year "

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