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Iowa House panel approves fuel tax increase

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DES MOINES (KWWL) -

An Iowa House panel has approved increased taxes on fuel and new vehicles to support road repairs.

The five-member panel has unanimously approved the plan on Monday. The plan would increase the state's fuel tax by 8 cents a gallon and increase the taxes paid when purchasing a new vehicle, generating an estimated $230 million annually.

The fuel tax would increase by 4 cents in 2013 and 4 cents in 2014.

Republican Rep. Dave Tjepkes of Gowrie says the state needs about $250 million more each year to keep the state's roads in good condition. The current fuel tax of 21 cents per gallon hasn't increased since 1988.

A Senate committee has also approved a measure raising the fuel tax by 10 cents a gallon.

 

 

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