What is not stated is that if LB 846 is passed without its accompanying appropriations bill LB 846A, it simply means that the implementation of the tax increase is delayed until later in 2009, rather than sooner. A tax increase is a tax increase regardless of when it takes place. By passing LB 846, the motor fuel tax will more than likely increase based on the formula in the bill. That formula will replace a component of the fixed portion of the motor fuel tax with a 5 percent wholesale tax, which will be based on the average wholesale cost of gasoline over the prior six month period. At current wholesale fuel cost the tax rate could increase by as much as 5.6 cents per gallon. Declining fuel usage will come as costs rise from taxes and the rising cost of crude oil prices affected by world wide demand, decreasing value of the dollar and money funds pressure. As the prices rise, the taxes will go up because of the percentage formula but not enough to offset the decline in sales. There also is no guarantee that enough revenue will be generated should the prices take a serious drop.

The tax increase is part of the cause for usage decline and creates "border bleeding", which are sales going to other states with lower taxes and cost. This is evident in the Omaha area. Up until January 1, the differential between Nebraska motor fuel tax and that of Iowa was seven cents on ethanol blended gas with Nebraska being higher. The impact can be demonstrated on cigarette sales. When Nebraska's tax was 28 cents per pack higher than Iowa, Nebraska sales dropped by 25 percent and increased in Iowa by nearly the same percentage. Since the tax in Nebraska is now lower, this has reversed and sales have increased by 25 percent. That shift will be evident as the fuel tax differential widens. This will create less tax income than planed or expected. Not only are you losing the differential in tax rates, you lose the entire amount of tax now at 23 cents per gallon.

We all like and need good roads. We all use these roads to deliver our goods and travel throughout the state. With fuel processing rising to all time highs, which we can not control, now is not the time to increase the consumer's cost of motor fuel in ways we can control.

Consumers need to contact their state senator and let them know now is not the time to increase the tax you pay on motor fuel, as well as, the increased cost you will incur in everything that you purchase as it is all delivered by trucks who will pass along their increased cost of doing business to you, thus you get to pay twice.

Fred A. Bosselman is the president of the Nebraska Petroleum Marketers and Convenience Store Association. He is also president of Bosselman Energy, Inc. of 3123 West Stolley Park Road, Grand Island.