Panel Nixes Gas Tax Hike

A state legislative committee last week decided against endorsing any revenue increases, including a four-cent hike in Iowa’s gasoline tax, to raise more funds for highway projects. The special interim committee, however, said that lawmakers would continue to look at highway funding issues when the Legislature returns to work next month. State transportation officials have warned that Iowa needs an additional $200 million annually to begin addressing $27 billion of unfunded needs over the next 20 years. Gov. Chet Culver said in a letter that he acknowledges the significant needs of the state, but he remains opposed to any increase in the gasoline tax because of current high gas prices at the pump.