Governor Signs Measure That Includes April 1 Gas Tax Hike

South Dakota Gov. Dennis Daugaard has signed a measure that increases funding for road and bridge projects, while also hiking the state’s fuel taxes by 6 cents per gallon.

Daugaard signed the proposal into law Tuesday. The measure is expected to raise tens of millions of dollars in road and bridge funding through increases in fuel taxes, fees and other assessments.

The measure increases license plate fees by 20 percent and the state’s motor vehicle excise tax from 3 percent to 4 percent. It also brings the maximum speed limit on South Dakota’s interstates to 80 mph.

The scope of the fuel tax hike had been the main sticking point in negotiations among lawmakers, who approved the measure Friday.

Most of the measure’s provisions will go into effect April 1.