Survey Responses on Fuel Tax Increase

Chamber Releases Survey Responses on Fuel Tax Increase

MASON CITY—The Mason City Chamber of Commerce recently surveyed its membership regarding legislative proposals to increase Iowa’s fuel tax.  More than 300 participants completed the survey within four days, which equates to a 20% response rate.

The Chamber forwarded the following survey information from Chamber members to North Iowa legislators, legislative leadership, and Governor Branstad’s office.


Increasing the Fuel Tax

  • More than 67% of respondents support increasing the Iowa fuel tax as long as the proceeds are used for roads and bridges.

Implementing a Fuel Tax Increase

  • 38% prefer a 5 cent per gallon increase in 2015, and a 5 cent per gallon increase in 2016. 33% of respondents prefer NO INCREASE.  The remainder (30%) indicated they prefer a 10 cent per gallon increase this year.
  • Several people offered additional recommendations for consideration such as:
    • Phase the fuel tax in over three years: 3 cents/4 cents/3 cents
    • Enact a sunset date on the increase—such as five years

Ag Diesel Fuel    (currently exempt from Fuel Tax)

  • More than 67% of respondents believe diesel fuel used for agricultural purposes should be taxed.

Comments:

  • Farm equipment, even if it is only on our roads and bridges occasionally, causes wear-and-tear. In addition, it is very important to have good roads and bridges for farmers—even if those roads are rarely traveled by the general public.
  • Everyone uses our roads and bridges; everyone should contribute something.
  • Ag Diesel Fuel should be taxed at the same rate as the increase on other fuels. If the legislature passes a  5 cent per gallon increase on gasoline and ethanol, the ag diesel fuel tax should be 5 cents.

Other Comments  (a sampling of 95 comments received)

  • The price of fuel has a direct effect on the price of other goods and services consumed in our economy. As a consequence, not only will my family be paying more for every gallon of gas, but every good and service we purchase will cost us more, too.   Legislators should keep in mind that a “simple increase” in the gas tax will be a complex increase on my family budget.
  • Our roads and bridges have been allowed to deteriorate to an unacceptable level and something needs to be done about it.
  • I don’t mind paying for road maintenance and upgrades as long as there is accountability. I have low confidence in our government’s ability to manage funds and projects well.
  • Gas is expensive enough.