
Fuel Buy Down in Guthrie Center Highlights Legislative Effort to Raise Motor Fuel Tax
March 10, 2026 | 
With fuel prices soaring in response to the war in Iran, Iowa lawmakers continue their pursuit toward raising Iowa’s motor fuel tax rates. Senate Study Bill 3001, represents the Iowa Senate proposal for reforming Iowa’s property tax system. Hidden away within the 102-page proposal is a section binding Iowa’s motor fuel tax rates to annual increases tied to the consumer price index (beginning on page 72, line 17). Under the Senate led proposal, Iowa’s motor fuel tax rates would be increased annually using an automatic index while insulating lawmakers from an annual vote up or down on the issue of raising the taxes Iowan’s pay on motor fuel purchases.
Fuel tax increases like this not only drive-up fuel purchasing costs on Iowan’s; they also drive up the costs Iowan’s pay for their daily essentials. At a time when inflationary drivers and affordability are the key issues facing Iowan’s, now is not the time to impose tax increases on Iowa consumers and Iowa businesses.
We are asking all FUELIowa members to contact their Senator and Representative and voice your opposition to an effort to increase Iowa’s motor fuel tax rates through an automatic indexing scheme. A quick review nationally of motor fuel tax rates reveals the common link among the highest motor fuel tax rate states in the country is an indexing model.
Because the effort to raise Iowa’s motor fuel tax rates has been intentionally shielded from public view, FUELIowa has partnered with the Americans for Prosperity to highlight the legislature’s motor fuel tax proposal using fuel promotion events. The following action center landing page has been created to assist Iowan’s with contacting their legislator and voicing their opposition to the tax increase: Oppose Iowa's Motor Fuel Tax Increase. Please consider promoting the action center on your social media platforms and with the customers who frequent your stores.
Click here to learn more about last week’s fuel buy down event in Guthrie Center.





