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Gas Tax Increase Possible In Iowa

Gas Tax Increase Possible In Iowa

Photo: clipart.com


Iowa Governor Terry Branstad says he’s open to considering all options that might boost the amount of money available to fix Iowa’s roads and bridges.


The state gas taxes paid when motorists fill up at Iowa pumps are deposited in the state’s Road Use Tax Fund, but transportation officials have said for the past several years there’s not enough money being generated from the gas tax to finance needed road and bridge repairs and new construction. It’s partly because modern vehicles get far better gas mileage — so fewer gallons of fuel are purchased — and partly because the state gas tax of 22 cents per gallon hasn’t been raised since 1989. Branstad says he isn’t calling on legislators to pass an increase in the state gas tax. Branstad suggests a wide-ranging combination of actions should be considered.


Branstad says he’s talked with leaders from both parties to see if there’s some way to come up with a “bipartisan consensus” among legislators this year, compared to previous years when no agreement emerged. The 2015 Iowa Legislature convenes Monday, January, 12th.

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