Indiana Senate GOP Won't Rule Out Gas Tax Hike to Fund Highways
Indiana Senate Republicans are not ruling out raising the state's gasoline tax or adding tolls to new roads to pay for road and bridge improvements in the state.
On Jan. 10, Senate leaders laid out their agenda for this year's legislative session, which requires the drafting of a new two-year state budget amid a call for more highway funding.
Senate President Pro Tem David Long didn't give specifics on the Senate GOP road plan, only that he wasn't ruling out any options.
That's a departure from last year, when his caucus opposed any plans that would increase taxes.
"We're in a situation where we need to either do something or be left behind," Long said.
Sen. Michael Crider (R-Greenfield) said there is a decrease in gasoline tax collections and Indiana will likely see double the rate of traffic on Indiana roads.
In the first week of January, House Republicans unveiled a road funding plan that calls for increasing the gasoline tax by 10 cents a gallon and adding a $15 per year fee on vehicles registered in the state.
They said their plan should generate $1.2 billion per year to maintain state and local roads and fund expansions.
Long said the Senate GOP plan likely would be a mix of options as well.
"It's what people can tolerate," Long said. "It's difficult in a state like ours, where it has really prided itself on cutting taxes and really living within our means, to have this discussion."
Ball State economics professor Michael Hicks, who has conducted research on gas tax increases, said they likely won't have a big effect on average Hoosiers.
"That 10-cent change in tax rate is kind of equivalent to the weekly changes you get in the pump," Hicks said. "Most consumers won’t notice it."
Star reporter Tony Cook contributed to this report.
