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Senate committee approves its version of road funding plan that would raise gas tax, add fees

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INDIANAPOLIS, Ind. – An Indiana Senate committee passed its version of a plan to pay for road improvements across the state.

The measure would raise the gas tax by 10 cents over 2 years, includes an additional $15 vehicle registration fee and adds a $100 fee for commercial license plates. In addition, the bill would add a $5 fee on each new tire bought in the state.

The plan now moves to the full Senate.

The Senate bill differs from the House version, which immediately shifts all gas tax revenue to road improvements. The House version also called for a 10-cent increase in the diesel fuel tax, while the version advanced by the Senate Committee on Tax and Fiscal Policy proposes a 6-cent increase phased in over 2 years.

The House planned to add a cigarette tax increase to the budget to offset revenue lost from shifting tax money to roads.

Lawmakers will need to reach a consensus on the bills before the end of the session.