House Republicans unveiled their road funding proposal and the proposed first steps would cover less than half of the state’s needs.
House Speaker Brian Bosma says Indiana needs an average of about $1.2 billion a year over the next 20 years for its roads. His caucus’ plan would immediately raise all fuel taxes by 10 cents to begin working toward that goal. Bosma says the House GOP plan would also create a new $15 annual fee on all vehicles.
“So, adding the registration fee and the gas tax – for the average Hoosier, $5 per month,” Bosma says.
The plan’s initial steps only raise a small portion of the necessary funding – about $300 million in the first year, for example.
Bosma says the proposal explores future funding sources, which include ensuring every penny from the sales tax on gasoline goes entirely to pay for roads and exploring tolls on existing interstates.
“It’s time to invest. Investing through dedicated funds raised through user fees is the wave of the future,” Bosma says.
The House GOP proposal would also impose a $150 annual fee on electric vehicles and allow small cities to impose a wheel tax.