BISMARCK — North Dakota lawmakers are considering a bill that would increase the state gas tax by 3 cents per gallon, bringing it to 26 cents. The Senate Finance Committee heard arguments on the proposal Friday.
Currently, North Dakota's gas tax stands at 23 cents per gallon. If approved, the increase would help create a county, city and township road fund.
Opponents argue that road maintenance is already funded by other sources. The bill also proposes raising the electric vehicle road use fee from $120 to $150 and increasing the plug-in hybrid vehicle road use fee from $50 to $60.
Rep. Jared Hagert, R-Emerado, who introduced the bill, said the benefits of the proposal outweigh the costs.
"We have to face the reality also, of the needs that are there. They're not wants. The roads, the conditions of the roads, they are needs for our communities," Hagert said.
The proposed tax rate would still be lower than neighboring states. Minnesota currently charges 32 cents per gallon, South Dakota has a 28-cent tax and Montana's rate is 33 cents.
The tax and fee increases would generate roughly $42 million per biennium. The Senate Finance Committee will now review the hearing’s findings before making a recommendation.
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