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Branstad signs bill into law removing 1-cent tax on Iowa gas

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May 16th, 2016 by Ric Hanson

DES MOINES, Iowa (AP) — Gov. Terry Branstad has signed a bill into law that will remove a penny-per-gallon tax on gasoline that has been used to pay for the cleanup of leaking underground petroleum storage tanks in Iowa. Branstad said at a bill signing Monday that the tax’s purpose is done and there’s enough remaining money available to address future issues. The tax will expire Dec. 31st.

The Iowa Legislature created the cleanup program in 1989 to pay for costs tied to environmental contamination from underground petroleum storage tanks located near gas stations. The environmental protection charge collected 1 cent per gallon of motor fuel. Iowa Department of Natural Resources Director Chuck Gipp says drivers could see relief at the pump since gas retailers will be expected to pay less in taxes.