Hoosiers will soon see 1-cent tax increase at the pump

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INDIANAPOLIS— A gas tax increase will soon go into effect in Indiana.

Lawmakers passed a bill last year that raised the 18-cent per gallon tax by 10 cents in order to fund road repairs.

The Journal Gazette reports that the 1-cent increase that goes into effect next month was part of a smaller section of the bill. The increase is part of an annual inflationary adjustment that’ll continue through 2024.

The American Automobile Association says the average price for regular unleaded gasoline in Indiana is $2.88, compared to $2.09 last year.

Emily Landis of the Indiana Department of Revenue says the special fuel tax rate will increase by one cent to 48 cents.

Landis says the gas tax increase is expected to generate $31 million annually.

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