Increasing the Per-Gallon Fuel Tax
Issue Overview: The state fuel tax is currently 25 cents per gallon, an amount that has not been raised in more than a decade. The proceeds from it -- about $233 million a year -- are divided between the state highway account, local governments and the Idaho State Police.
Issue Background: About two-thirds of Idaho's state-funded transportation revenue is from the fuel tax, the other third comes from vehicle registration fees. Neither has increased since 1997. State officials have determined that $200 million more is needed annually for the next 30 years just in order to keep up with deteriorating pavement and road and bridge repairs throughout the state.
NFIB Position: Eighty-four percent of NFIB/Idaho members oppose increasing Idaho's per-gallon fuel taxes, because Idaho's gas tax is now 11th highest in the nation, and at $3 and more per gallon, gas prices are already driving up the cost of goods and services. Additional taxes just make it worse.
Issue Status: No serious legislative effort to raise the fuel tax was pursued.
