The View From Wisconsin

Just a random set of rants from a Sports Fan from Wisconsin.

Thursday, September 01, 2005

Gas, Lodging, Cats - Ahead 1,033 Miles

I'm still confounded about the anti-capitalistic laws we have in the state of Wisconsin when it comes to gasoline. There is a law on the books here that is just insane, and it's really starting to hit people at the bottom line of the gas pump.

It's officially known as the "Unfair Sales Act" - but is more colloquially known as the Minimum Markup Law. The state requires sellers of gasoline to "mark up" the price of their gasoline by a certain percentage, so consumers couldn't get the bare-bones "wholesale" price for gas, even if they wanted. This practice essentially eliminated the old practice of discounting cash purchases, or the creation of "gas warehouse cards" (for example, Sam's Club or a major grocery chain) selling gas at a discount for club members.

That's not all that's odious about State Statute 100.30: There is a section that requires a station to have an equal level of markup to the station closest to it at all times. Basically, if a station has gas at $2.099 a gallon, the next closest station must have a per-gallon price of no more than a penny or two. This law aggravates drivers to no end, especially when one station gets a new supply of gas – at a drastically increased price – suddenly you see other stations changing their price signs in response. You can go to a station in the morning, fill up at $2.799 a gallon, see another station down the highway get a new supply of gas, and later drive by the same station where you filled up to see that gas has shot up to $3.099.

There's another law regarding gasoline that has been a hot-button topic in the last few years – is the automatic increase in the gas tax each year. Every April 1, people grouse because the state automatically increases its tax on a gallon of gas, and no legislator is bold enough to put together legislation to rescind this law – or, if they do, it fails in a squabbling of issues that keep it from eitehr getting to a vote or even getting out of committee. The main problem is that the state's coffers are already drained, and the budget-makers and legislators count on that increase to pay for the spending they're planning for the future.

It's obvious that these laws need to not only be re-evaluated, but rescinded and thrown on the junk-heap of bad legislation. Open up the free-market system by removing the shackles on pricing. If a station can sell a ton of gas at $2.499 while everyone else is selling it at $3.099, more power to them. If people want to join a gasoline co-op or a "warehouse club" so they can get gas cheaper – isn't that what America is based on?

A "gas tax holiday" (where the state gas tax would not be collected for a certain period of time), while a good idea, would just hurt the state fiscally – something that it can't quite afford to do. Instead, rescind the mandatory increase in the gas tax, so that it remains "frozen" for at least two years or more. Add in a requirement that any automatic increase in the gas tax would have to be voted upon in a state-wide referrendum. (You can guess how much that would get voted down.)

On to other things: