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Branstad signs gas tax increase bill

gas-pumpDES MOINES – Just a day after the Iowa Legislature approved bills that would increase the tax on gas, Governor Terry Branstad signed the bill into law.

Senate File 257 was signed by Branstad with nothing more than a statement emailed to the press. The bill relates to transportation funding by limiting the term of indebtedness for certain county projects, modifying certain permit fees, modifying the rate of the excise taxes on motor fuel and certain special fuel, establishing a fuel distribution percentage formula for certain special fuel used in motor vehicles, requiring legislative review of the fuel distribution percentage formulas, extending the repeal date of the Access Iowa Highway Plan, and including effective date provisions.

The bill passed the Iowa Senate 28-21 and Iowa House on February 24, 2015, 53-46.

“I believe that the leadership deserves credit for working together on a bipartisan basis to pass a piece of legislation that I think will be very beneficial to meeting the needs of the counties and cities as well as the state transportation network,” Branstad said as he signed the bill. “I think nobody’s satisfied exactly, but that’s the nature of a significant issue like this.”

The state tax on gasoline and diesel will raise by 10 cents per gallon beginning on Sunday.

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