CHICAGO - Legislation to raise Iowa's gasoline tax by as much as 10 cents to bolster transportation is being prepared with several key lawmakers saying the measure stands a good chance due to mounting bipartisan support for action.
Sen. Tod Bowman, D-Maquoketa, and Rep. Joshua Byrnes, R-Osage, will sponsor the legislation. Each controls his respective chamber's Transportation Committee. The House is controlled by Republicans and the Senate by Democrats. Gov. Terry Branstad is a Republican.
The lawmakers said recent lower gas prices and Branstad's support for some form of funding package make the timing right.
"I've never felt more optimistic about moving forward with the gas tax," Bowman said on Wednesday during discussions with lobbyists and local business and civic leaders gathered at the state capitol to discuss transportation issues.
A 10-cent increase in the existing 22-cents-per-gallon tax could generate more than $200 million annually. A transportation task force assigned by the governor several years to explore financing woes put a $200 million price tag on the extra funding needed annually to maintain and repair the state's roads and bridges.
The fuel tax has stood at 22 cents per gallon for more than 25 years. The lawmakers are hoping for votes on the legislation next month before debate heats up on other issues like the state's proposed $7.2 billion budget and before lawmakers shift their attention to upcoming elections.
Along with the budget and various social issues like medical marijuana and a ban on traffic cameras, lawmakers also may debate legislation allowing Des Moines and other cities to hold referendums allowing them to impose a 1-cent local option sales tax. The measure stalled in the House last year. Some Republican lawmakers also are expected to press for income tax cuts and changes in the tax system.
Other transportation funding sources pitched include reducing the gasoline tax and enacting a 5% tax on gasoline purchases at the wholesale level.
Branstad has said in recent interviews that he wants a solution but a gasoline tax may not provide the sole answer to the state's woes.
"I don't think we have a consensus on it yet," Branstad said in a televised interview, noting that gasoline tax revenues are dwindling as consumers purchase more fuel efficient vehicles while registration and taxes on vehicle purchases are rising.
"I think that's going to continue to be a diminishing source of revenue so we need to try to come up with a better approach" that includes several sources under discussion, Branstad said, adding that polls repeatedly have shown taxpayer opposition to a gasoline tax hike. The state's proposed budget includes a $700 million transportation program up from $600 million this year, he said.
