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In addition to raising the gas tax to match a rise in inflation, the proposal would allow local municipalities with populations of at least 20,000 to implement a wheel tax.
file photoINDIANAPOLIS -- House Republicans revealed more specifics about their road funding proposal Thursday as the caucus unveiled its legislative agenda for the 2016 session.
In addition to raising the gas tax to match a rise in inflation – which the House Republican caucus previously revealed would be part of its plan – Speaker Brian Bosma says the proposal would allow local municipalities with populations of at least 20,000 to implement a wheel tax. Currently only counties have that ability.
Bosma says the state would help communities by creating a matching grant program for local projects.
“Where they could, on a dollar-for-dollar basis, apply for grants created by the funds that we are proposing to raise here,” he said.
Bosma says the plan would also allow counties to increase existing wheel and excise tax rates and adopt a new income tax dedicated to roads and bridges.
House Minority Leader Scott Pelath says his caucus’ proposal – which shifts around state tax dollars to increase road funding – is an easy sell.
“I’m not as certain they can sell theirs particularly when it comes to, quote ‘revenue enhancements,’” Pelath said.
House Republicans will officially unveil their entire plan Monday.
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