(Zach Lahn - Community First Broadcasting Staff Photo)Iowa (RI) — Republican candidate for governor Zach Lahn says pump prices are crushing Iowans, and he’s promising to seek a temporary 50% reduction in the state gas tax if he’s elected.
Lahn says when legislators convene in January, they should immediately pass a bill cutting the state fuel tax in half for six months. State fuel-tax revenue pays for road and bridge construction and maintenance, and Lahn says he’d ask lawmakers to suspend state tax breaks for data centers for the same six-month period to offset any shortfall in road-funding dollars.
He’s also calling for a state law that would require the legislature to automatically consider reducing the gas tax whenever fuel prices rise significantly. Florida Governor Ron DeSantis approved a gas-tax holiday in October 2022, though he later questioned whether consumers saw much relief if retailers raised prices.
In 2022, Democrats in the Iowa Legislature proposed suspending the state gas tax for a month, but Republican lawmakers argued the move would jeopardize funding for needed road and bridge improvements.
Iowa’s current fuel-tax rates are:
- 30 cents per gallon for regular gasoline
- 28 cents per gallon for gas with more than 15% ethanol
- 32.5 centers per gallon for diesel.
The state collects between $1.5 million and $2 million in fuel taxes per month during the winter.
