Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

Iowa Looks to Increase Fuel Tax

February 23, 2012

The Iowa Legislature is looking to increase the state’s Motor Fuel Tax through a bill that would increase the excise tax a total of 10 cents by Jan. 1, 2014. Senate Study Bill 3141 passed in the Senate’s Transportation Committee on Feb. 15 and one other related bill has since been introduced.

The amendment to the state’s fuel tax, which is currently 20 cents on each gallon of fuel for any motor vehicle, would increase the tax to 25 cents starting Jan. 1, 2013, and to 30 cents per gallon by Jan. 1, 2014.

The purpose of the increase is to generate more funding for the state’s roads. The Iowa Department of Transportation estimated in a 2008 study that the increase will cover the approximately $200 million needed for statewide road repairs.

For the full bill’s text as it currently stands, click here.

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