Idaho Hikes Gas Tax By 4 Cents Today

Starting today, Idaho motorists will pay more at the pumps, as the Idaho Legislature starts a $34 million per year tax increase designed to generate more money for highway and bridge improvements.

The tax on gasoline and diesel goes up 4 cents per gallon to 25 cents per gallon. The state tax on natural gas goes to 19.7 cents per gallon and propane will be taxed at 18.1 cents.

A lot of people hoped for weekend fill-ups to beat the price increase, but the American Automobile Association of Idaho said its survey of prices showed most stations boosted prices before the higher tax went into effect.

Based on its survey of 87 stations, the AAA Idaho said the average price for a gallon of self-serve unleaded was up 8 cents per gallon since mid-February. The average price, $1.17 per gallon, still was about 1 cent lower than the national average but up 4 cents from the most recent five-year average for the Easter weekend holiday.

The fuel tax increase is just part of higher prices facing motorists. The tax on fuel was started April 1 so the first $6 million in revenue could be used by the Idaho Department of Transportation to help units of government match federal funds for repairs caused by last month’s flooding.

Rep. JoAn Wood, R-Rigby, one of the leaders in the effort to get the fuel tax increase, thinks that provision was critical to getting the increase approved by the Legislature.

It scraped through the House on a 37-31 vote and was approved by the Senate by a single vote.

“That, I think, probably convinced a few of them to vote for it that may not have,” she said.

The other half of the tax increase starts in January. Registration fees for cars and trucks under 8,000 pounds will go up an average of $6 per year. The biggest increase is for new vehicles, which go from $36 to $48.

The increase will generate $3.75 million for the current budget year, but when the higher fees are in effect for a full budget year, they will bring in an extra $7.5 million.

Off-road users also benefit from the tax increase. They will divide $600,000 per year extra for such things as parks and recreation facilities, waterways improvements and search and rescue programs.