State Gas Tax Update: One Up, One Down

This has been an eventful week for gas taxes. To update two posts that appeared recently, Gov. Terry Branstad of Iowa signed legislation that increases the gas tax by 10-cents on March 1. In California, a board voted to decrease the tax by six cents.

2 minute read

February 27, 2015, 9:00 AM PST

By Irvin Dawid


Gov. Branstad, a Republican, wasted no time is signing the bipartisan 10-cent gas tax increase legislation that passed the General Assembly on Tuesday. He signed it Wednesday, so the increase goes into effect Sunday (March 1) as the bill stipulated. The gas tax will increase from 22.5-cents per gallon, not changed for over a quarter of a century, to 32.5 cents. The average state gas tax in the United States is 27.66 cents.

The additional tax will "generate $215 million annually to address critical road and bridge improvements," wrote Rod Boshart for KCRG ABC News. 

Mark Tauscheck of KCCI Des Moines writes that motorists may not necessarily see the tax increase at the pumps on Sunday as fuel that is currently in station tanks need not be taxed. He explains that aspect of the tax increase in greater detail in the video.

The news was not good for transportation officials in the Golden State, though no doubt many motorists will be pleased. As posted last week, the state Board of Equalization (BOE), tasked with keeping tax revenue equivalent to the 8 percent sales tax that existed prior to the complicated 2010 gas tax swap, voted on the decrease, though the amount was reduced from what was initially indicated.

Adam Randall of the (Ukiah) Daily Journal does an excellent job of explaining the six-cent decrease to the current 36-cent gasoline excise tax resulting from Tuesday's unanimous vote by the BOE. The decrease tax effect on July 1.

California has the second highest gas tax after Pennsylvania (due to the Pa. 2013 gas tax legislation). On July 1, it will likely drop below New York, Hawaii, and Connecticut to the fifth highest in the nation. [See Nebraska's chart (PDF) that ranks total state gas taxes from highest to lowest based on the American Petroleum Institute's tax information.

No sooner had Branstad signed the bill than he announced that the stalled Highway 20 project would now be "fast tracked."

Thursday, February 26, 2015 in KCCI Des Moines

Sweeping view of Portland, Oregon with Mt. Hood in background against sunset sky.

Oregon Passes Exemption to Urban Growth Boundary

Cities have a one-time chance to acquire new land for development in a bid to increase housing supply and affordability.

March 12, 2024 - Housing Wire

Aerial view of green roofs with plants in Sydney, Australia.

Where Urban Design Is Headed in 2024

A forecast of likely trends in urban design and architecture.

March 10, 2024 - Daily Journal of Commerce

Cobblestone street with streetcar line, row of vintage streetlights on left, and colorful restaurant and shop awnings on right on River Street in Savannah, Georgia.

Savannah: A City of Planning Contrasts

From a human-scales, plaza-anchored grid to suburban sprawl, the oldest planned city in the United States has seen wildly different development patterns.

March 12, 2024 - Strong Towns

Aerial View of Chuckanut Drive and the Blanchard Bridge in the Skagit Valley.

Washington Tribes Receive Resilience Funding

The 28 grants support projects including relocation efforts as coastal communities face the growing impacts of climate change.

March 18 - The Seattle Times

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18 - Beverly Press

View from above of swan-shaped paddleboats with lights on around artesian fountain in Echo Park Lake with downtown Los Angeles skylien in background at twilight.

LA's Top Parks, Ranked

TimeOut just released its list of the top 26 parks in the L.A. area, which is home to some of the best green spaces around.

March 18 - TimeOut

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.