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Iowa: Motor Fuel Tax Increase


 Transportation in Iowa need more funds.

Motor fuel tax in Iowa will increase by 10 cents per gallon, effective July 1, 2015. Additional revenue will fund various transportation projects around the state.

Senate File 257 imposes the following fuel tax rates:

  • Compressed natural gas: 31 cents per gallon (up from 21 cents).
  • Liquefied natural gas: 32 cents per gallon (up from 22 cents).
  • Liquefied petroleum gas: 30 cents per gallon (up from 20 cents).

Additional rates for special fuels are explained in detailĀ in SF 257, or in the Iowa Department of Revenue fuel tax FAQs.

An automated solution allows businesses to generate signature ready fuel tax returns. Learn more.

photo credit: Downtown Cedar Rapids via photopin (license)


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.