Iowa Lawmakers Considering Gas Tax Hike

While many legislators support a gas tax increase, agreement on the amount of the increase is far from settled.

January 10, 2013

CEDAR RAPIDS - Two incoming chairmen of Iowa??s Transportation committees in the House and Senate are considering gas tax hike proposals, the Globe Gazette reports.

With an aging transportation system in need of funding, state Reps. Josh Byrnes and Tod Bowman say revamping the state??s transportation system is critical to rural and urban economies. While they are considering raising motor fuel taxes, they concede the prospect is a sensitive one among lawmakers.

"I supported a gas tax increase last year," Byrnes said. "I think most legislators do. They know there??s a need, but the hesitancy comes on the implementation, the amount of the increase."

Byrnes has drafted a bill that doesn??t specify the amount of an increase, a factor that he hopes will kickstart the conversation amicably.

"People hear the words fuel tax and think of money fleeing from their pocket books," Byrnes said.
"No one wants a tax increase," Bowman agreed, "but I certainly understand the need."

State House Speaker Kraig Paulsen said any fuel tax increase must be part of a larger discussion that lowers Iowans?? overall tax burden, adding that??s the only way Governor Terry Branstad would approve the legislation.

Currently, Iowans pay a state fuel tax of 21 cents a gallon for regular gasoline, 19 cents for ethanol-blended gasoline, and 22.5 cents per gallon for diesel fuel.

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