Gas tax increase reasonable

By James D. King

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One of the state legislative issues generating discussion that directly affects us all is a proposed increase in the fuel tax. It behooves us as citizens, drivers and taxpayers to know facts about Iowa's gas tax, the implications of an increase and what effects it may have on us individually and as a state.

I am convinced that the gas tax is a fair way to fund roads. If you drive more, you pay more. If you drive less, you pay less. This is unlike raising registration and license fees as the state did a few years ago through TIME-21, where the proverbial little old lady who only drives around town pays the same fee as a salesman driving 60,000 miles per year. I prefer a user tax.

The last time state legislation changed the gas tax significantly was in 1989. Those rates still stand at 21 cents for gasoline, 19 cents for ethanol blend and 22.5 cents for diesel.

Simple arithmetic shows what impact an increase of 10 cents per gallon in fuel tax would have on the “average” driver. If Joe Average drives 25,000 miles per year with a vehicle getting 25 mpg, he purchases 1,000 gallons of gas. Increased cost equals $100 for the entire year. That is approximately $2 a week. My own plan to deal with this increase in cost is to not purchase a soda or coffee and doughnut on the day(s) I fuel my fleet of four personal vehicles. Such a plan would improve the roadways of Iowa and my health at the same time. Others may have different techniques that better suits their lifestyle.

Looking back at 1989, gasoline costs averaged 96.9 cents per gallon; diesel was similar. State fuel taxes were 20 cents for gas and 22.5 cents for diesel. Comparing to the fuel cost from the unscientific sample above, state tax in 1989 on gas was 20 percent of its cost, and 23 percent of diesel cost. A snapshot of taxes and gas prices today shows gas and diesel at about 6 percent and

5.9 percent of total cost.

So gas taxes today are a much better deal proportionally than they were 23 years ago. Or from a different perspective, 23 years ago, highway departments received about the same dollars as they do today with dramatically more buying power.

A 10-cent increase in the gas tax would generate approximately another $49 million for Iowa counties, with my county's portion a little over $500,000. A positive first step, but not yet sufficient to stabilize or improve the system. Research by the Iowa County Engineers Association's Service Bureau pegged Iowa's county road system needs alone at $151 million per year just to maintain the present system.

Should we raise the tax a dime? Of course, and we should do it now.

James D. King is Fayette County engineer. Comments: jdking@co.fayette.ia.us