Iowa House panel approves plan to raise state’s fuel tax by 8 cents a gallon

A five-member Iowa House panel has unanimously approved a plan to increase the state’s fuel tax by 8 cents a gallon.

The measure approved Monday also would increase the tax paid when purchasing a new vehicle. The two increases would combine to generate about $230 million annually.

The money would be dedicated to road repairs.

Gowrie Republican Rep. Dave Tjepkes says studies show the state needs about $250 million more each year to keep the state’s roads in good repair. He notes the 21-cents-per-gallon fuel tax hasn’t been increased since 1988.

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

Under the House measure, the fuel tax would increase by 4 cents in 2013 and 4 cents in 2014.