Branstad signs gas tax increase, minimum wage bill moves forward

Alex Hanson

Iowa Gov. Terry Branstad wasted no time signing an increase to the state’s gasoline tax Wednesday, less than 24 hours after it passed the Iowa legislature.

Branstad’s office said Wednesday morning that the governor had signed Senate File 257, the 10-cent increase, into law. The increase takes effect this Sunday, March 1.

The bill passed the Iowa Senate Tuesday morning, 28-21, and later in the Iowa House, 53-46.

The 45 percent increase marks the first time the gasoline tax has been raised since 1989. It is expected to raise around $200 million dollars which will help fill a $215 million shortfall projected by the Iowa Department of Transportation to cover infrastructure repairs.

The Iowa Senate also moved Tuesday to raise the state’s minimum wage, approving a proposal 27-22 to gradually raise it to $8.75 by next July.

All 26 Democrats in the Iowa Senate were joined by one Republican, Rick Bertrand of Sioux City, in voting to approve an increase.

If signed into law, the state’s minimum wage would increase to $8.00 an hour in July this year, then increase again to $8.75 in July of 2016. Iowa’s current minimum wage is the same as the federal minimum wage, $7.25 an hour.

The increase looks unlikely to be debated in the Republican-controlled Iowa House or gain support from Gov. Branstad. Republicans in the Iowa legislature, and nationwide, have said they are focused on other forms of economic growth that would provide higher paying jobs without an increase.