A vote in the Senate Transportation Committee on an 8-cent increase to Iowa’s fuel tax could take place Thursday, the committeee’s chairman told the Cedar Rapids Gazette.
The bill would raise Iowa’s 21-cent fuel tax by 4 cents now and another 4 cents in 2010. It would eventually raise nearly $170 million annually for road and bridge construction projects. A similar bill has also been introduced in the Iowa House.
The state hasn’t raised its gas tax since 1989. Iowa’s gas tax ranks 32nd nationally.
Democratic legislative leaders have been joined by a broad coalition of interest groups, including the Iowa Farm Bureau and local chambers of commerce, in advocating for a gas tax increase. Democratic Gov. Chet Culver and Republican legislative leaders have said they don’t want to raise any taxes during a recession, with Culver favoring his $700 million bonding plan to fix Iowa’s crumbling infrastructure.
Culver has not yet gone so far as to say he would veto the measure if it is passed.