Farm, Business Coalition Pushing For Iowa Fuel Tax Increase

Casey's General Store and Kum & Go both operate gas stations on Penn Street in North Liberty. Photographed Monday, July 30, 2012. (Liz Martin/The Gazette-KCRG)

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By Belinda Yeung

DES MOINES, Iowa (AP) — A coalition of farm and business groups is forming to push Iowa legislators for a 10-cent increase in state taxes on gasoline and diesel fuel.

Scott Newhard, of the Associated General Contractors of Iowa, told The Des Moines Register that he's expecting support for the idea from the Iowa Farm Bureau, the Iowa Bankers Association and several other agriculture and business groups.

Newhard says the fuel tax increase is needed to address a $215 million annual funding shortfall for critical maintenance and improvements needed by Iowa's road system.

Spokesman Tim Albrecht for Gov. Terry Branstad says Branstad would look favorably on raising tax revenue for roads and bridges only if the proposal were contained "within a broad, overall tax reform package that reduces taxes on all Iowans."

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