Iowa House panel approves fuel tax increase - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa House panel approves fuel tax increase


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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