INDIANAPOLIS – With only a few days remaining in this year’s legislative session, lawmakers are still debating the details of a road funding plan that could include an increase in the state’s gasoline tax.
House Bill 1002 aims to establish a “sustainable, long-term” road funding plan, raising the gas tax by 10 cents over two years, as currently structured after the bill was changed by the state Senate. It includes an additional $15 vehicle registration fee and adds a $100 fee for commercial license plates. In addition, the bill would add a $5 fee on each new tire bought in the state.
The Senate bill differs from the House version, which immediately shifts all gas tax revenue to road improvements. The House version also called for a 10-cent increase in the diesel fuel tax, while the version advanced by the Senate Committee on Tax and Fiscal Policy proposed a 6-cent increase phased in over two years.
The bill is now in a conference committee, where lawmakers from the House and Senate are trying to work out their differences and reach a compromise before sending the final version of the bill to Governor Holcomb.
In the video above, advocates on both sides of the issue discuss the proposal, and what it could mean for taxpayers and drivers in Indiana.