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With extra online sales tax money expected to flow, Gov. Gary Herbert says gas tax hike might be avoided

Gov. Gary Herbert says a proposed 10-cent-a-gallon increase in Utah gasoline taxes — which polls show is unpopular — might not be needed as part of a deal struck this year to help generate $300 million more for schools.

That’s thanks to a U.S. Supreme Court decision that now allows states to collect online sales tax from out-of-state merchants who sell to Utahns. Residents always legally owed that tax, but the state had no way to collect it. Residents were supposed to report it on income tax returns, but few did.

In a follow-up interview, Herbert made clear that he hopes voters will support the gasoline tax in a nonbinding question on the Nov.