Update March 17, 2015:
Governor Dennis Daugaard (R) signed into law a bill that will generate over $80 million per year for state and county highway and bridge investment, funded in part by a 6 cents-per-gallon increase in the state gas tax. Senate Bill 1 also authorizes an additional 1 percent to the motor vehicle sales tax and an increase in license plate fees by 20 percent. Additionally, counties will be allowed to increase property taxes for local transportation funding. The bill will go into effect April 1.
In a press release, Gov. Daugaard stated, “Maintaining our roads and bridges is a fundamental function of government. In order for us to get to work, school, church or the grocery store, we have to have adequate roads. This important legislation will significantly aid state and local governments in maintaining and improving infrastructure.”
In passing this bill, South Dakota becomes the second state in 2015 to increase the state gas tax for transportation funding, with one additional state pending approval from the governor. Iowa’s Governor Terry Branstad (R) signed a 10 cents-per-gallon increase into law on Feb. 25. Additionally, the Utah legislature voted to approve a 5 cents-per-gallon increase on March 12, and the bill now awaits review by Governor Gary Herbert (R).
Original post from March 16, 2015:
Governor Dennis Daugaard (R) is reviewing a bill that would generate an estimated $88 million for state and county highway and bridge investment, funded in part by a 6 cents-per-gallon increase in the state gas tax.
South Dakota lawmakers reached a compromise March 13 on Senate Bill 1, which in addition to raising the gas tax would increase transportation investment by adding an additional 1 percent to the motor vehicle excise tax and increasing license plate fees by 20 percent. Counties would also be allowed to increase property taxes for local transportation funding.
The Senate voted 25-9 to approve the modified Senate Bill 1, and the House of Representatives subsequently passed the bill with a vote of 55-11. If approved by Gov. Daugaard, this would be the state’s first gas tax increase since 1999.
South Dakota is now the third state in 2015 whose legislature has voted to raise the state gas tax for transportation funding. Iowa’s Governor Terry Branstad (R) signed a 10 cents-per-gallon increase into law on Feb. 25. The Utah legislature voted to approve a 5 cents-per-gallon increase on March 12, and the bill now awaits review by Governor Gary Herbert (R).
The Transportation Investment Advocacy Center is currently tracking 28 states and over 100 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/