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22 @ April @ 2017 @ Charles W. Moore
Occasional thoughts and deeds of an Engineer
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  • Road Taxes: Big user pays big

    Posted on April 22nd, 2017 cwmoore No comments

    The Indiana General Assembly recently passed House Enrolled Act 1002, which provides a long-term, sustainable funding plan for building and maintainin

    The Indiana General Assembly recently passed House Enrolled Act 1002, which provides a long-term, sustainable funding plan for building and maintaining Indiana’s transportation infrastructure.

    The plan focuses on a user-pays approach, dedicating all of the taxes paid at the pump to road funding. This is the fairest system since those who pay the most will also get the most benefit.

    When fully phased in, HEA 1002 will provide $1.2 billion per year in new road funding – about $850 million for state highways and about $350 million for local roads.

    Under this plan, the average Hoosier driver will pay an additional $5 to $6 per month, which includes a 10-cent gas tax increase beginning in 2017, with a maximum one-cent-per-year increase thereafter for the next six years, and a $15 annual BMV registration fee.

    The plan also includes a “fair share” fee for vehicles that currently pay little or no fuel taxes. Electric vehicles will have an annual fee of $150 and hybrid vehicles will have an annual fee of $50.

    With these funds, Indiana can complete current and future projects while maintaining our roads and bridges for the next 20 years.



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