Questions and Answers

Q: What revenue alternatives were identified in the report?

A: The report identified options within the existing revenue sources (fuel taxes, motor vehicle registration fees, use tax on motor vehicles, and driver's license fee), as well as other potential Road Use Tax Fund (RUTF) revenue sources not currently used in Iowa.

The potential RUTF revenue sources include a sales tax on the cost of fuel purchases, a severance tax on ethanol exported from Iowa, a per-mile tax based on vehicle miles of travel within the state, a transportation improvement district tax, bonds for Primary Road System improvements, privatization, toll road segments, development impact fees, and public-private partnerships.

The report briefly describes each option for addressing the funding shortfall, along with brief remarks on advantages and disadvantages of each option.