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North Dakota rejects raise to the Gas Tax

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Published: Mar. 26, 2021 at 3:19 PM CDT
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BISMARCK, N.D. (KFYR) - North Dakota drivers will be saved between $20-$30 a year.

The State Senate killed a bill that would’ve increased the gas tax from 23 cents to 26 cents.

North Dakota hasn’t increased the tax in more than 15 years, and the competitive advantage was alluring for some Senate members.

Organizations representing drivers, counties and even oil companies supported the bill.

Supporting lawmakers said it’s one of the few taxes that directly benefits those who pay for it.

But with more federal money on the way and expanding implementation of the state’s Legacy Fund, lawmakers decided to use those funds before taxing drivers.

“If we take a stream of that Legacy money and put it unto the Highway Trust Fund, that is a legacy. That continues on. And our children and our grandchildren will not have to be taxed for that,” said Senate Majority Leader Rich Wardner, R-Dickinson.

If it passed, North Dakota would’ve collected more than $27 million over the next two years to fund road and bridge projects, according to a state study, $15 million of which is for cities and counties.

The bill passed the House 62 – 32 and at one point increased the gas tax to 29 cents per gallon.

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