Last week, the Senate approved an amended version of House Bill 1002, which would establish a long-term, sustainable road funding plan for Indiana.

Indiana Senator Randy Head said, “The Senate’s road-funding plan, which is based on a user-fee philosophy, would generate about $672 million per year. This is the fairest way to fund our roads, because those who drive the most will pay the most, and also get the most benefit. Our plan also seeks to spread the costs of road funding fairly to everyone who drives on our roads, not just one type of driver or vehicle.”

For the average Hoosier driver with a gas-powered vehicle, the Senate’s plan will cost $5 to $6 per month, which includes a phased-in 10-cent gas tax increase and a $15 annual BMV registration fee. To limit the impact on average Hoosiers, the Senate plan also:

  • Closes loopholes that allow some commercial truckers and diesel drivers to under-pay the fuel taxes they owe
  • Enacts fees for alternative-fuel vehicles that pay little or no fuel taxes
  • Increases taxes and fees for large trucks and commercial vehicles that put more stress on our roads

Addressing our road funding situation is important for Hoosier motorists and the future of our state.

Senator Head said, “I will keep you updated as this issue continues to move through the legislative process.”