INDIANAPOLIS (AP) — Indiana lawmakers plan to release soon a broad outline of a roads funding agreement that will raise taxes, and details have slowly started to drip out.
Majority Republicans generally agree on raising the state’s per-gallon fuel taxes by at least 10 cents. It also charges a new $15 annual fee on all vehicles, a $150 annual fee on electric vehicles and $50 for hybrids registered in Indiana.
The revenue raised through the plan will pump about $1.2 billion in new annual revenue for state and local roads and bridges beginning in 2024.
The sticking points have been House proposals to raise cigarette taxes and shift all sales tax revenues also charged on fuel purchases to infrastructure funding.
House Speaker Brian Bosma says Senate Republicans have agreed to slowly shift all fuel sales taxes, but he says the cigarette tax is dead due to overwhelmingly opposition in the Senate. Bosma called the plan the most significant infestment into Indiana roads ever.
“This comprehensive road funding plan marks the strongest infrastructure investment in state history,” Bosma said. “We met our long-term goal of creating a comprehensive, responsible and sustainable plan that funds our roads for the next generation. Hoosiers recognize the need to maintain and improve our infrastructure, and this conservative approach directs all fees paid at the pump directly to roads. This plan also ensures those who utilize our roads are paying for them. House and Senate lawmakers ultimately struck the right balance between funding Indiana’s greatest asset while protecting budget stability.”
Senate President Pro Tem David Long (R-Fort Wayne) echoed Bosma’s statements, saying the funding plan will be long-beneficial for the state.
“This legislation delivers a historic long-term investment in Indiana’s transportation infrastructure,” Long said. “Investing in our roads is crucial to public safety, economic development and quality of life across the state. This is a responsible, comprehensive funding plan and I look forward to seeing the positive benefits for our state in the years ahead.”
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