Lawmakers Debate 3-Cent Gas Tax Increase

(Michael Achterling/North Dakota Monitor)

(By: Michael Achterling. North Dakota Monitor) – North Dakota lawmakers are weighing the first increase to the gas tax in 20 years and an increased electric vehicle fee, with the new tax revenue earmarked for improving local roads.

House Bill 1382 proposes to raise the motor fuels tax, including gasoline and diesel, by 3 cents per gallon to 26 cents. The tax was last increased in 2005.

Supporters say that even with the increase, the fuel tax would still be lower than neighboring Minnesota, which charges 32 cents per gallon, South Dakota, which charges 28 cents, and Montana, which charges 33 cents.

The bill also would raise the vehicle registration fees for electric vehicles from $120 to $150 per vehicle, plug-in hybrids from $50 to $60 and electric motorcycle registration fees from $20 to $25. The registration fees were implemented in 2019.