Iowa May Consider Raising the Gas Tax

The Des Moines Register writes that Iowa may consider raising the gas tax during this legislative session.

A coalition of Iowa highway lobby groups will seek at least a nickel-per-gallon increase in the state's gasoline and diesel taxes during the annual session of the Iowa Legislature that convenes on Monday.

The issue matters because the state's aging network of 113,786 miles of roads is wearing out from decades of use and extreme weather.

More money is needed to maintain the road system and make improvements to support economic development, fuel tax supporters contend. A 5-cent increase in fuel taxes would raise an additional $105 million annually for city, county and state road projects. Road construction projects nationwide are also expected to be a major part of President-elect Barack Obama's economic stimulus plans.

A motorist who purchases an average of 20 gallons of gasoline per week would pay an additional $52 per year if a 5-cent-per-gallon tax increase is approved. Highway engineers contend that if needed road and bridge repairs are ignored, taxpayers will face steeper repair bills in the long run as infrastructure conditions worsen.

House Speaker Pat Murphy is quoted in the article that raising the gas taxes would create 4,000 to 5,000 construction jobs and a bill will be considered in the House. Senate Majority Leader Mike Gronstal said for the bill to be brought up in the Senate that it would need broad bipartisan support.