NORTH BRANFORD, Conn. (WTNH) — A family-owned trucking business in North Branford warns that a new highway use tax is driving up their costs — passing along that increase to customers.

Palumbo Trucking has been in business for 35 years. It owns about 100 pieces of equipment and has two generations of family members running it.

However, the new highway use tax implemented on Jan. 1 could change that. The tax charges large trucks by the mile and weight of freight.

Dave Palumbo said the new tax would send the trucks down unwanted roads. Gov. Ned Lamont argues that it will ensure that out-of-state trucks help pay for the upkeep of Connecticut’s roads.

Palumbo estimates the tax would cost an extra $80,000 to $90,000 yearly and that he’s had to hire more staff. Factoring in administrative costs, that soars to $150,000 each year.

Lamont, however, has said it will create $90 million in revenue to help with bonding for future road projects.

“It is incredibly important that Connecticut has the financial resources to rebuild and maintain our bridges, roads and transportation network,” a spokesperson for Lamont told News 8. “Bankrupting the Special Transportation Fund takes us in the wrong direction and will result in the State being unable to undertake critical projects to improve safety, reduce traffic and get you to where you are going on time.”