North Dakota lawmakers support fuel tax increase for infrastructure funding

North Dakota lawmakers are taking significant steps to address the state's pressing infrastructure needs by proposing an increase in the fuel tax. During a recent Senate Finance and Taxation meeting, officials discussed the necessity of augmenting funding for local transportation projects, emphasizing the growing demands on infrastructure and the limitations of current funding sources.

The proposed increase of 3 cents per gallon would raise the fuel tax from 23 to 26 cents, still keeping it below the national average of 33 cents and lower than neighboring states like Minnesota and Montana. This adjustment aims to reduce the state's reliance on federal highway funding, which has been a critical source of support but is increasingly seen as insufficient to meet local needs.

Jenny Dietzmann, representing the North Dakota Association of Counties, highlighted the staggering infrastructure costs projected over the next two decades, estimating a need of nearly $11 billion for unpaved roads, paved roads, bridges, and minor structures. She praised past legislative efforts, such as Operation Prairie Dog and surge funding, but stressed the importance of establishing long-term funding solutions to allow local governments to effectively plan for future projects.

Larry Severson from the North Dakota Township Officers Association echoed these sentiments, advocating for the fuel tax increase as a necessary measure to ensure that out-of-state drivers contribute to the maintenance of the roads they use. He pointed out that the purchasing power of existing funds is diminishing, making it crucial for local governments to find alternative revenue sources.

The committee also heard from Matt Gardner, executive director of the North Dakota League of Cities, who noted that city infrastructure needs are not fully captured in existing studies. With 77% of the state's population living in urban areas, the demand for improved city streets is significant.

As discussions continue, the proposed fuel tax increase represents a proactive approach to securing the necessary funding for North Dakota's infrastructure, ensuring that local governments can meet the needs of their communities effectively. The committee is expected to deliberate further on this proposal, with the potential for a vote in the coming weeks.