Interim Taxation Committee Discusses Need for Fuel Tax Increase

The Interim Taxation Committee spent the bulk of their discussion on transportation funding and how an increase in the state’s fuel tax would support necessary investments to improve roads and bridges long-term.

North Dakota’s motor fuel tax is .23 cents/gallon. It’s been at that level since 2005. Vehicle Registration fees have not increased since 2005 as well. In fact, North Dakota’s fuel tax is one of the lowest in the nation. Fuel taxes are distributed into the Highway Distribution fund, which is distributed to the state, counties, cities, townships for road construction. Director of North Dakota Department of Transportation, Bill Panos, indicated that the traditional funding sources simply do not meet the transportation needs in the state. Panos identified that $2.18 billion should be invested in the next ten years in order to maintain the current road and bridge system.
A 1 cent increase would equal $7.4 million in additional Highway Distribution Fund dollars, of which 22% goes to county roads. Committee Chairman, Representative Jason Dockter, expressed support in the development of a bill to increase the fuel tax for the next Legislative Session. However, no motion was made for an interim committee bill to be drafted.
$3.5 billion in one-time transportation legislative funding has been provided since 2007. Representative Vicki Steiner questioned how North Dakota is not further ahead when the state has appropriated billions of dollars in one-time funds in recent years. Director Panos recognized the legislature’s substantial support for North Dakota’s road system, with much of the funding dedicated to investments in western North Dakota. Panos indicated that those roads were at the same time incurring excessive damage from heavy trucks and high traffic volumes. He told lawmakers North Dakota roads will rapidly deteriorate if additional investments are not made. He highlighted how bridges are even a greater issue; indicating how North Dakota is #47 in the United States for bridge quality.

Check out the links to presentations provided to the interim committee:

ND DOT Presentation: https://www.legis.nd.gov/files/committees/662019/21_5175_02000_1100presentation.pdf

UGPTI – Tim Horner Infrastructure Needs: ND County, Township & Tribal Roads
https://www.legis.nd.gov/files/committees/66-2019/21_5175_02000_1120presentation.pdf