(Radio Iowa) – Governor Kim Reynolds says state gas tax revenue isn’t keeping up with what’s needed to build and maintain Iowa’s roads and bridges — and it may be time to have regular increases in the gas tax that are tied to inflation.
The tax rate on gasoline and diesel fuel hasn’t changed since the 10-cent hike that took effect 11 years ago. Reynolds says there’s a growing gap between the revenue being generated by that so-called “road use tax” and what is needed for the state’s transportation system. The property tax bill Senate Republicans released in January had a mechanism that would have automatically triggered incremental increases in the gas tax that were tied to a yearly inflation factor. However, that was not included in the property tax realignment package Reynolds signed into law last month.
During property tax negotiations with legislators this spring, Reynolds did not publicly share her opinion on whether the gas tax should be included — but during taping of the “Iowa Press” program that airs tonight (Friday) on Iowa P-B-S, Reynolds was asked about raising the gas tax.
Reynolds signed the final batch of bills from the 2026 legislative session on June 2nd. She’s not seeking reelection and a new governor will be sworn into office during the first week of the 2027 legislative session.
