DES MOINES – Even as the state of Iowa sits on a multi-billion dollar surplus, the state legislature is still pondering a hike in the state’s fuel tax.
State highways maintained by the Iowa Department of Transportation are financed with funds that are principally derived from vehicle fuel taxes and registration fees.
To offset any possible shortfall in funds needed to maintain Iowa’s roads and bridges, Governor Branstad’s Transportation 2020 Citizen Advisory Commission recommended an increase of 8 to 10 cents in the state’s fuel tax in a report created in 2011.
Iowa’s fuel tax is now 22 cents per gallon and was last raised in 1989.
Dedicated highway user revenue, sometimes called Road Use Tax Fund (RUTF) is collected through the fuel tax and deposited into the Iowa Road Use Tax Fund. No state general fund (i.e., general tax) revenue is used for highway projects in Iowa.
For state fiscal year 2013, receipts into the RUTF and the TIME-21 Fund (a revenue stream which helps to address projected budget shortfalls; created by changing certain vehicle registration fees and schedules, and by increasing trailer and title fees) are estimated to be $1.298 billion, comprised of $443.8 million in fuel taxes, $779 million in various registration fees, plus $75.5 million from miscellaneous other sources.
Iowa Code requires that every five years the Iowa DOT complete a review of the current revenue levels of Iowa’s road use tax fund and the sufficiency of those revenues to meet the construction and maintenance needs of Iowa’s state, city and county roads.
According to a report published in theiowarepublican.com, “those who advocate for the increased (fuel tax), mainly the Iowa Department of Transportation and county engineers, warn that if regular maintenance continues to be delayed, the cost to fix the roads will be exponentially higher that it would be if they are able to be more frequently maintained. The Iowa DOT estimates an annual shortfall of $215 million, and that’s just to address the most critical needs.”
Teachers need more money – ever look in the school parking lots – these are the haves and your buy here payhere 24% interest Yugo is the havenot- course it’s your private citizens muuula paying for that –
What are you people complaining about? It’s only a mere 8 – 10 cents a gallon and the fuel tax hasn’t been raised since 1989. It’s across the board and everyone will pay not just a select few.
maybe the fuel tax hasn’t been raised in years but the price of gas raises almost daily. If they wanted to raise the tax on gas why don’t they wait till the economy gets alittle better. I guess at the rate we are going the economy will never get better.
Farmer’s ain’t going to like it but farm fuel needs to pay a portion of the fuel tax. It’s only right.
What happened to the 6.5 Million generated from truck registration fees.
The estimated fiscal impact of HF 2249 would be revenue neutral to the Road Use Tax Fund as
follows:
• An increase of $6.5 million in motor vehicle registration revenues to the Road Use Tax
Fund.
If we have a surplus, and we need some work done on our infrastructure, it doesn’t take a genius to know what to do.
Branstad is so obsessed with using that surplus to give CORPORATIONS more tax breaks that he’s willing to lean on the middle and lower income folks. In true repub style, this will only hurt people who drive for a living, people who travel to see family, people who drive to work and school every day…
It sure in the heck doesn’t belong in some out of state (or out of country) company’s pocket!
@sicka-You are correct. I would much rather see us pay for roads out of state surplus instead of giving it to out of state corporations. He want to reduce the corporate tax by 40%. Why not 20% if we want to entice jobs to the state and use the other 20% for roads. Just don’t give it to teachers, they make enough.
Geez, where did all this hatred for the republican party come from?
@maybe-reducing the percentage from 40% to 20% is not hatred of the Republicans. Using the other 20% for road use just makes sense rather than adding another tax on to the public. We need to get out of this mode of Democrats vs. Republicans and just say and do what is best for the people.
This is a terrible time to consider raising this tax. It hurts everyone right away.
It’s time to start having the farmers pay taxes on the fuel they use. With all the subsidies they get and land values going out of sight, I’m sure they can afford it.
@Allen-excellent idea and I completely agree. Now lets see if we can get our state government to tax farmers who make millions instead of paying them extra.
This will stimulate the Iowa economy? and give the fat cat Public servants teachers union payback) another raise – You people are toooo smoooothe>
In what world does the gas tax have anything to do with teachers unions? You know that the taxes paid on fuel go into a road use tax fund correct? And the reason you are seeing taxes go up can be directly attributed to cars and trucks operating under greater fuel efficiency guidelines. It cost more today to maintain the same highways and “we” are using less fuel to do the same amount of damage to said highways.
So lets stop trying to sell these ridiculous ideas that teachers are making the price of gas go up, and lets start living in the real world.