State News


Iowa Governor Approves State Gas Tax Increase

Iowa Governor Terry Branstad (R) on Feb. 25 approved a 10 cents-per-gallon state gas tax increase, the first in the state since 1989. The increase, effective March 1, is estimated to generate over $200 million for transportation funding in the next fiscal year. Before...

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States Talking Transportation for 2015

Looking Back at 2014 Transportation was a hot topic with state legislatures in 2014, with 66 bills introduced across the country. Over twenty transportation-related bills were approved, with funding legislation approved in 11 states. Of those states, both Rhode Island...

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Iowa DOT Presents $2.7 Billion Five-Year Plan

The Iowa Department of Transportation is calling for $2.7 billion in highway construction and right of way spending as part of its draft 5-year plan presented to the Iowa Transportation Commission on Tuesday. This includes $1.2 billion for modernization of the state’s...

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Transportation Funding Ballot Measure Results



Fuel Taxes

Excise tax:

  • Compressed natural gas (CNG): 31 cents-per-GGE
  • Liquefied natural gas (LNG): 32.5 cents-per-DGE
  • Liquefied petroleum gas (LPG): 30 cents-per-gallon
  • E85: 29.3 cents-per-gallon
  • Biodiesel: excise tax based on number of gallons of biodiesel blended fuel classified as B-11 or higher that is distributed in the state as expressed as a percentage of the number of gallons of special fuel for diesel engines of motor vehicles distributed in the state.

Fee/Tax in addition to Gas Excise Tax: Environmental fee (1 cent-per-gallon).

*Federal funding percentages are from an ARTBA analysis of FHWA Highway Statistics data, total ten year average 2004-2013 from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and engineering, but are also used for debt service for GARVEE bonds.