Iowa’s Road Use Tax Fund Receipts Steady Despite Dip In Vehicle Mileage

Statewide Iowa — The amount of taxes collected that go to fund road projects in the state has remained strong despite some decreases in travel brought on by higher gas prices.

The Iowa Department of Transportation’s Shawn Majors says 95 percent of the road use tax fund comes from the fuel tax, registration fees and taxes on the sale of new and used vehicle sales.

Majors says the registration revenue is not as much as it was prior to COVID.

A chip shortage has cut the number of new car sales, which has in turn driven up the cost of used cars, a new registration fees are based on the cost of the vehicle.

Majors made his comments in a report to the state Transportation Commission.

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