It’s no secret that gas has become more expensive since President Trump launched military operations in Iran. I keep meticulous track of my spending, so I can easily show how things have changed for my family:
While continuing negotiations with Iranian leadership, President Donald Trump indicated yesterday that he wants to temporarily suspend federal gas taxes, which currently sit at 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. While that would not completely erase the price increases caused by the Iran conflict, every little bit would help.
Should Idaho consider suspending our gas tax as well? Gubernatorial candidate Mark Fitzpatrick has already called for just that.
Idaho Code § 63-2402 establishes a 32-cent tax per gallon of gasoline and diesel. Tracking down a single number showing how much Idaho receives in gas tax revenue is difficult, since these are dedicated funds divided in various ways before reaching the appropriations process. Idaho Code § 63-2412 details how those revenues are spent—on state highways, waterways, and other transportation infrastructure. A 7-cent-per-gallon increase passed during the 2015 legislative session is split, with 60% of the revenue going to state highways and 40% to local governments. Estimates based on Department of Financial Management (DFM) data place Idaho’s total annual fuel tax revenue at roughly $360 million.
If Idaho were to consider pausing or reducing the gas tax, it would require a special session of the Legislature to modify current Idaho statutes. Lawmakers could pause the tax for the summer vacation season or perhaps reduce it by 10 cents per gallon or thereabouts. Gov. Brad Little could call the Legislature into session, or House and Senate leadership could convene a special session with the support of 60% of both chambers.
It’s difficult to say exactly how much of a hit state and local highway funds would take from a reduction or pause in Idaho’s gas tax. It is not as simple as dividing $360 million by four to estimate the cost of a three-month pause, since summer typically sees more travel than other times of the year. Nevertheless, DFM data show that tax revenues, despite last year’s dip, are currently running ahead of projections.
There are certainly many factors and variables involved. We should ensure that Idaho’s transportation system remains properly funded to provide safe and reliable travel throughout the state. Nevertheless, this seems like a worthwhile discussion to have as Idahoans plan their summer vacations in an uncertain world.
About Brian Almon
Brian Almon is the Editor of the Gem State Chronicle. He also serves as Chairman of the District 14 Republican Party and is a trustee of the Eagle Public Library Board. He lives with his wife and five children in Eagle.
