The Iowa legislature on Feb. 24 approved a 10 cents-per-gallon state gas tax increase. The state last raised its gas tax in 1989. The increase is estimated to generate $204 million for transportation funding in the next fiscal year.
The House passed House File 351 with 53 in favor and 46 opposed—23 out of the 42 House Democrats and 30 of the 56 House Republicans approved the bill. The Senate passed companion bill Senate File 257 with 28 in favor and 21 opposed—16 out of 26 Senate Democrats and 12 out of 23 Senate Republicans approved the bill. HF 351/SF 257 now await approval from Governor Terry Brandstad (R), who indicated on Feb. 16 that he will approve the measure. The governor has three days to review the legislation once he receives it, and if it is signed into law the gas tax increase would go into effect on the first day of the next month.
Transportation Investment Advocacy Center staff is currently tracking 25 states and over 90 bills pending legislative action, with more anticipated as the year progresses. The State Transportation Funding Initiatives Report is updated on a monthly basis to reflect the most comprehensive information. To view the most current report, visit: http://www.transportationinvestment.org/category/state-funding-initiatives-report/