Show Federal Gas Tax Hurts Cities Pro ber Reports Imposition n of a federal gas tax tends ends to discourage allocation of gas tax ax revenues by states to cities for tor construction a d maintenance of streets a report by Dr Clarence Heer of ot American Legislators' Legislators association asso asso- dation declares Re Recent ent traffic surveys Indicate that about half haIt of ot all aU the mileage traveled by jy motor vehicles in the United States Is traveled on city streets This means that hall half the gas taxes are collected collected col col- col- col on fuel burned within city limits Despite this fact of collected through state gasoline casoline taxes axes in 1932 only or less leas than 4 per cent was returned to municipalities Only nine states al allow ale al- low cities to participate In the gas ga taxat tax taxat taxat at all Street costs arc are a heavy item in munIcipal budgets Dr Heer observes In n 1931 1031 cities cItie of and over spent on city streets about 14 per jer cent of ot their combined expend expend- tunes ures for all purposes es These cities had outstanding of street Improvement bonds representing represent represent- Ing ng about on one fifth fifth of their total in in- In some cities the proportion proportIon pro- pro portIon of ot street Indebtedness to the tota total otal is over over 50 per Oper cent Being denIed denied denied de de- de- de nied access to gas giU tax funds to meet such obligations cities have to rely on the he general property tax Failure of this his source has contributed to ta wIdespread widespread widespread wide wIde- spread defaults In municipal bonds In Imposing a gasoline tax Dr Heer Seer concludes the federal government govern govern- ment Tient prevents prevent th the states from relieving ing lag the overburdened property taxpayer taxpayer tax tax- tax tax-I payer by transferring a n larger Jarger share of ot the cost of ot streets and highways to motor vehicle users It pr prevents vents the states from stemming the rising tide of municipal bankruptcies by allocating 1110 1 allo allo- eating cating to their municipalities th the share of the gasoline tax to which I Ithe the they are justly entitled I |