Indiana House Republicans have unveiled their road funding plan that calls for higher taxes, but also adds $500 million annually to the state’s infrastructure.
The plan, formally unveiled today, includes the following…
- Indexes the tax on gasoline and motor fuel to 2015 rates. The last time it was indexed was 2002.
- Dedicates five cents of the gasoline use tax to road funding, currently it is one cent.
- Shifts the sales tax on gasoline to roads and bridges.
- Gives local governments options to raise revenue for local projects (either a Local Option Income Tax or a wheel tax)
- Raises the tax on cigarettes to leverage more Medicaid dollars in order to free up general revenue funds for infrastructure.
House Speaker Brian Bosma said the plan was responsible, comprehensive and sustainable. He said the plan would cost the average Hoosier about $25 more annually in gas taxes, but he also noted that average motorists has more than $360 in road repairs due to damage from the roads.
You can hear the Speaker’s comments, as well as those from other supporters of the plan in the Leon-Tailored Audio above. The total time is 26 minutes.