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People are driving less now—and paying fewer road taxes

Posted: Mon, Apr 6, 2020 12:58 PM

The latest figures from the Iowa Department of Transportation show a 40 percent reduction in vehicle traffic during March, according to Winneshiek County Engineer Lee Bjerke.  He told county supervisors Monday that while the reduction is a good sign the public is complying with requests to stay home, it also means they are paying less in road use taxes.

Bjerke says truck traffic appears to be holding steady, so there won't be a drop in those road use tax collections.  But Bjerke says the Iowa DOT is alerting counties that there will be "a large impact in 2021-2022."  Bjerke says a 15 percent reduction in road use tax collections is possible.  That could mean a $438,000 drop in revenues.

Bjerke says the county should be OK this year, but, looking ahead, he predicts the county road budget will be "nowhere near what we'd like it to be."