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It's TIME to stay informed
Welcome subscribers to the inaugural TIME-21 e-alert. We hope that you find these periodic alerts beneficial in keeping you informed about the challenges facing Iowa's public roads system, as well as any legislative solutions that are proposed.

Don’t miss the latest news. Click on "HOT Topics" listed to the right.

To learn even more about Iowa's public roads system, you're also invited to read the Quick Facts offered with each e-alert.

If you want to follow the day-to-day happenings, keep visiting the TIME-21 Web site www.iowadot.gov.

It's TIME to stay informed.

Dena M. Gray-Fisher, Director
Media and Marketing Services
Iowa Department of Transportation

Quick Facts
Iowa Road Use Tax Fund (RUTF)

Established in 1949 by the 53rd Iowa General Assembly, the RUTF has provided a stable and reliable source for investing in the state's primary, secondary and municipal roadway systems.

After some off-the-top diversions, receipts into the fund are distributed according to a formula of 47.5 percent for the Primary Road System, 24.5 percent for the Secondary Road System, 8 percent for farm-to-market county roads, and 20 percent for city streets. Legislation that went into effect in 2003, which involved the transfer of jurisdiction of some roadways from the state to either a city or county government, requires a share of the Primary Road System funds (1.75 percent) to be paid to local governments.

For state fiscal year 2006, receipts into the RUTF totaled an estimated $1.101 billion. This represents $431.1 million in fuel taxes, $407.2 million in registration and other miscellaneous fees, $220.1 million in use tax on the purchase of motor vehicles, $21.3 million from underground storage tank fees, $11.4 million from drivers' licenses, and $10 million in interest.

State Tax on Motor Fuel - 2007 (cents per gallon/cpg)

Fuel

Tax

Effective Date

Regular gasoline

21.0

The last gasoline tax increase was effective 1/1/89. Minor adjustments to the rate are made annually based on the percentage of ethanol-blended fuel sold during the previous calendar year compared to total gasoline sold. The last adjustment was effective 7/1/06 when the rate increased from 20.7 cpg to 21.0 cpg, and will remain at that rate until 6/30/07.

Gasohol (ethanol blend of 10 percent)

19.0

1/1/89

Diesel

22.5

1/1/89

Liquid propane

20.0

1/1/89

E85

17.0

1/1/06

e-alert issued 1/10/07