Fuel Tax Increase Could Be on the Horizon in Iowa
Iowa Gov. Terry Branstad, who initially had opposed a fuel tax increase, now says he's open to hearing the other side. The fuel tax debate will come before the Iowa Legislature this session.
While some doubt it will muster enough support, a bipartisan group of legislators now predicts an increase in Iowa's fuel tax will pass. The details of the proposal are still being worked out, but officials are exploring a plan in which they would find $50 million in savings in the Iowa Department of Transportation and then consecutive 4- or 5-cent per gallon fuel tax increases, in 2013 and 2014. Iowa’s fuel tax is 21 cents per gallon for gasoline and 19 cents for ethanol-blended fuel. The tax was last increased in 1989. Each 1-cent per gallon increase is expected to generate $22 million a year, meaning the increase would generate between $176 million and $220 million a year in additional revenue when fully phased-in. That's disconcerting …
In this Article:
