Governor Dennis Daugaard (R) signed into law a bill that will generate over $80 million per year for state and county highway and bridge investment, funded in part by a 6 cents-per-gallon increase in the state gas tax. Senate Bill 1 also authorizes an additional 1 percent to the motor vehicle sales tax and an increase in license plate fees by 20 percent.  Additionally, counties will be allowed to increase property taxes for local transportation funding. The bill will go into effect April 1.

In a press release, Gov. Daugaard stated, “Maintaining our roads and bridges is a fundamental function of government. In order for us to get to work, school, church or the grocery store, we have to have adequate roads. This important legislation will significantly aid state and local governments in maintaining and improving infrastructure.”

In passing this bill, South Dakota becomes the second state in 2015 to increase the state gas tax for transportation funding, with one additional state pending approval from the governor. Iowa’s Governor Terry Branstad (R) signed a 10 cents-per-gallon increase into law on Feb. 25. Additionally, the Utah legislature voted to approve a 5 cents-per-gallon increase on March 12, and the bill now awaits review by Governor Gary Herbert (R).

The Transportation Investment Advocacy Center is currently tracking 28 states and over 120 bills pending legislative action, with more anticipated as the year progresses. The State Transportation Funding Initiatives Report is updated on a monthly basis to reflect the most comprehensive information. To view the most current report visit: