Support for gas tax increase growing in Iowa, Branstad says

Gov. Terry Branstad said he sees support during the next legislative session for raising the state's gas tax, which hasn't changed since 1989.

Branstad told about 65 people during a town hall meeting in Onawa on Tuesday that there could be public support for increasing the gas tax between 8 and 10 cents over three years if it's linked to decreases in property and income taxes, the Sioux City Journal reported.

The gas tax is currently at 19 to 22.5 cents per gallon depending on the type of fuel.

A citizen's panel had recommended increasing the tax by up to 10 cents a gallon to raise money for road and bridge work, but the proposal failed in the Legislature last session.

Branstad, a Republican, urged lawmakers to suspend discussions for a year over concerns about a fee increase at a time of high gas prices. The Iowa Department of Transportation was also working to cut expenses and save money.

Branstad said Tuesday that the department found about $150 million in savings. He said if the gas tax is raised, more money could be directed to various highway projects, including widening U.S. Highway 20 in western Iowa.

During the meeting, Monona County Engineer David Carney said the county had difficulty repairing 120 bridges and some road projects had been shelved due to funding issues.

James Johnston, of Onawa, said it is difficult to watch gas prices rise, sometimes jumping 10 to 15 cents in a day. But, he said, a gas tax increase of about 7 cents is defensible.

"It is the people using the roads that pay the fee," Johnston said.

Taxes are likely to be a major issue when lawmakers return to Des Moines in January. Republicans have proposed returning $390 million to taxpayers, and both GOP and Democratic officials have said they will seek property tax reform.