SALT LAKE CITY – Beginning this summer, Utah residents will be paying a nickel more per gallon of fuel, thanks to a new gas tax signed into law last week by Gov. Gary Herbert. The increase, which could climb higher in the future, is expected to add a nearly $76 million increase to the state fuel tax.

At the same time, Herbert also signed a $76 million increase in property taxes, designed to help bring funding for rural schools up to par with those in more affluent, urban areas.

Some saw both tax hikes, coming in a year when the state experienced a huge surplus, as unnecessary. But Herbert said the tax increase will help ensure Utah's long-term transportation needs can be met. "A strong transportation infrastructure has played a critical role in our economic growth and it will continue to do so thanks to this bill," he said in a statement.

Effective July 1, the bill raises the existing 24.5-cent-per-gallon state gas tax by a nickel. The tax hadn't been raised in 18 years. Going forward, the tax rate will rise automatically with gas prices, thanks to a 12% sales tax that will take effect once the wholesale price of gas reaches $2.45. The wholesale price is about $1.73 currently. The tax is capped at 40 cents per gallon. Counties also are authorized to seek voter approval of a quarter-cent increase to their local sales tax under the bill for local transportation and transit.