Republican candidate for governor Zach Lahn says pump prices are “crushing” Iowans and he’s promising to seek a temporary reduction in the state gas tax if he’s elected.
In a news release today, Lahn said when the legislature convenes in January, they should immediately pass a bill that cuts the state fuel tax in half for six months. The state taxes raised from the sale of gasoline and diesel fuel are used to finance road and bridge construction and maintenance. Lahn indicated he’d ask lawmakers to suspend state tax breaks for data centers for six months to fill shortages in funding for road projects.
Lahn is also calling for a state law that would automatically force the legislature to immediately consider reducing the state gas tax when fuel prices rise significantly. Florida Governor Ron DeSantis approved a gas tax holiday in October of 2022. This spring DeSantis said he’s not sure consumers really got much relief because retailers raised gas prices. In 2022, Democrats in the legislature proposed suspending Iowa’s gas tax for a month, but Republican lawmakers said the move would jeopardize funding for badly needed road and bridge improvement.
The state tax on a gallon of regular gasoline is 30 cents. Gas that contains more than 15% ethanol is taxed at 28 cents a gallon. The state tax on diesel is 32.5 cents a gallon. The state collects between $1.5 million and $2 million in fuel taxes a month during the winter.
Current Iowa Governor Kim Reynolds is not seeking reelection. Lahn is competing against Democrat Rob Sand to be Iowa’s next governor.