-- A gas tax increase will soon go into effect in Indiana.
Lawmakers passed a
bill last year that raised the 18-cent per gallon tax by 10 cents in order
to fund road repairs.
The 1-cent increase
going into effect next month was part of a smaller section of the bill, The
Journal Gazette reported. The increase is part of an annual inflationary
adjustment thatíll continue through 2024.
ďI donít think the
public is aware,Ē said Democratic Rep. Phil GiaQuinta of the small annual
GiaQuinta said he
opposed the bill because it means lawmakers donít have to vote each year in
order to raise the tax.
Indiana had the
nationís seventh-highest state tax and fee on gasoline as of April,
according to the American Petroleum Institute, putting it behind
Pennsylvania, California, Washington, Hawaii, New York and Michigan.
The average price
for regular unleaded gasoline in Indiana is $2.88, compared to $2.09 last
year, according to the American Automobile Association.
The special fuel
tax rate will increase by one cent to 48 cents, said Emily Landis of the
Indiana Department of Revenue.
The gas tax
increase is expected to generate $31 million annually and some of the funds
will be distributed to local governments, Landis said.
The stateís gas tax
last increased in 2003. Indiana residents are also paying a new $15 car
registration fee, though hybrids come with a $50 fee and electrics cars have
a $150 fee.
The overall package
will fund a 20-year infrastructure plan projected to cost $32 billion. The
first five years of the program includes $4.7 billion for state roads and