Gas Taxes Going Up As Budget, Road Funding Bills Signed Into Law

By Mike Perleberg (Left to right) Sen. Hershman, Senate Pro Tem Long, Gov. Holcomb, House Speaker Brian Bosma, Rep. Brown gather as the governor signs HEA 1001, the state’s biennial budget bill. Photo provided. (Indianapolis, Ind.) - Indiana's next two-year budget and a long-term road funding plan are signed, sealed and delivered. During a Thursday ceremony at the Statehouse, Governor Eric Holcomb signed the $32.1 budget bill into law. Joined by House Speaker Brian Bosma (R-Indianapolis) and Senate President Pro Tem David Long (R-Fort Wayne), Holcomb also signed a road funding bill that will increase the state tax on gasoline and increase registration fees to pay for improvements. "I can assure you that come July, you and all of you are going to smell asphalt morning, noon and night," said Holcomb. The bill aims to spend roughly $1.2 billion per year in new funding to replace aging roads and bridges by increasing the state's fuel tax by 10 cents a gallon and imposing new vehicle fees. The governor's signature on the bill removes any doubt that, starting July 1, Hoosiers will pay more at the pump. The new vehicle registration fees will kick in January 1, 2018. The governor called the plan to build and maintain roads and bridges will be the largest, non-stop sustained building programs that this state has ever seen. "It's going to truly connect Indiana to the world and bring the world back here to Hoosier soil," said Holcomb. Although Democrats had other ideas on how to pay for it, the idea of a sustainable road funding plan was widely supported by most every lawmaker. Bosma said the funding plan will not saddle future generations with debt and directs all sales taxes on gasoline to roads. “Unlike other states and Washington, D.C., we worked from a strong fiscal foundation to build consensus, support pro-growth policies and keep Indiana moving in the right direction," Bosma said. Long lauded the legislature's passage of a balanced budget. "When you combine that with a sustainable plan to fund our transportation infrastructure needs for the next 20 years, I think Indiana is continuing to send a message that we are a great place to live and do business," he said. The road funding plan also orders the Indiana Department of Transportation to study potential tolls on state highways and interstates. The governor would have the authority to place a toll on a road, with approval of the state budget committee. Holcomb said Thursday he expects to have a draft toll road plan by 2018. RELATED STORIES: Gov. Holcomb Signs Three Bills To Aid Opioid Addiction Epidemic Lawmakers Pass Budget, Road Funding, Gas Tax Increase As Session Comes To A Close