Fuel Tax Could Be On The Horizon For Iowa
Each 1-cent per gallon increase is expected to generate $22 million a year, meaning the increase would generate between $176 million and $220 million a year in additional revenue when fully phased-in.
The possible tax while disconcerting to some local businesses might not have to much of an effect right away.
Johnston Businesses, Workers React
Brian Kelly, a driver for Jimmy Johns , opposes the increase, but doesn't think it will change his rate of reimbursement.
"It won't cost more to Jimmy John's," he said. "It will hurt the drivers, but not necessarily the drivers."
Kelly said drivers are only paid a percentage of their gas costs.
"If we deliver one sandwich, we can lose money," he said.
Across town at Hy-Vee Floral , delivery rates already increased once in the last year, said Tracey Northway, floral manager.
"We aren't going to raise them," she said. "That's not floral’s decision. Sounds crazy but our drivers drive for the whole store, so they deliver for pharmacy and groceries at times."