The Indiana legislature approved an infrastructure funding measure that increases the state’s diesel and gasoline tax by 10 cents a gallon on July 1, while ensuring that all of the money gained from that fuel tax bump is completely dedicated to roads by 2025.
Gov. Eric Holcomb indicated he will sign the measure projected to boost road funding by $1.2 billion per year by 2024.
The legislation calls for raising fuel taxes by up to 1 cent annually for seven years to adjust for inflation, hikes vehicle registration fees and gives the governor the power to add tolls, if approved by the State Budget Committee and/or the state receives permission from the federal government.
Other states debating similar fuel-tax increases in their search for ways to increase infrastructure budgets include Colorado, South Carolina and Minnesota.