North Dakota House, Senate at Odds Over Proposed Gas Tax Increase

(Michael Achterling/North Dakota Monitor)

(By: Amy Dalrymple and Michael Achterling. North Dakota Monitor) – North Dakota lawmakers continue to debate the first increase to the gas tax in 20 years, with the House advancing a 5-cent tax increase while the Senate unanimously defeated a separate bill with a 3-cent increase.

Supporters in the House said the increase is needed to adequately maintain roads and bridges. A 5-cent increase to the motor fuels tax, which includes gasoline and diesel, would put North Dakota at 28 cents, still competitive with neighboring states.

Members of the Senate, meanwhile, objected to raising the gas tax while at the same time trying to cut property taxes, which has been a primary goal of the legislative session.

“It doesn’t make sense to the Senate to offer and promise property tax relief, and then we tax you on the backside of something else that everybody uses,” said Sen. Janne Myrdal, R-Edinburg.

The 5-cent gas tax proposal is contained in the North Dakota Department of Transportation budget, Senate Bill 2012. House members voted 61-31 to advance the budget, but the gas tax amendment to the bill passed by a 47-42 margin.

North Dakota has not increased the motor fuels tax since 2005. Rep. Jon Nelson, R-Rugby, said vehicles have become more efficient in that time, leading to a leveling off or decline in overall gas tax revenue to support road projects.