North Dakota Fuel Tax a Keeper

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A temporary 3-cent fuel tax increase enacted in North Dakota to provide funding to repair flooded roads was made permanent to handle a deluge of a different kind.

The tax was increased in response to severe flooding that hit the state in spring 1997. It was supposed to end in July 1999, but the state transportation department persuaded legislators and Gov. Edward T. Schafer to keep the tax so the state could take full advantage of increases in federal transportation funding enacted last year.

The funding legislation required states to supplement federal road repair and construction money with a certain level of state funds.

LeRoy H. Ernst, managing director of the North Dakota Motor Carriers Association, said the industry recognized the need for the road funding and had no problems with extending the tax increase.