Indiana House approves increase in gas tax, vehicle registration fees

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INDIANAPOLIS, Ind. – The Indiana House approved a bill that would increase the gas tax, increase vehicle registration fees, and open the door for statewide tolls on Indiana highways.

House Bill 1002, sponsored by Rep. Ed Soliday (R-Valparaiso), passed the Indiana House on Thursday with a 61-36 vote today.

If it passes, the state tax on gasoline, diesel, and other motor vehicle fuels would increase by 10 cents per gallon. It would also annually increase by one cent to adjust for inflation.

Indiana motorists would also pay an extra $15 in vehicle registration fees at the BMV. Motorists with electric cars would pay an additional $150 in fees.

Lastly, the governor would also have the ability to implement tolling without the approval of state lawmakers.

Speaker Brian Bosma released the following statement regarding the passage of the long-term road funding plan:

“Hoosier drivers and businesses across our state recognize the critical need for improvements to our roads and bridges. That’s why House Republicans focused on crafting a conservative plan to reform the way we fund infrastructure needs for the Crossroads of America. Reps. Ed Soliday and Tim Brown have worked hard on this legislation, which is centered on data-driven and responsible solutions. Today’s passage of House Bill 1002 marks an important step and is the culmination of a 6-year long process of determining our funding needs and the best options to meet those needs. We look forward to working with our counterparts in the Senate to continue the conversation.”

House Bill 1002 now moves to the Senate for further consideration.

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