This legislative session road funding is a major topic of discussion, and with it, Indiana’s gas tax.
Senator State Indiana Randy Head said, “Drivers pay an 18-cent state gas tax per gallon of gas purchased in Indiana.” On average, the tax provides Indiana with more than $500 million every year. However, the total dollars collected are split up among different mechanisms that fund transportation infrastructure.
Senator Head explained how that revenue is separated:
- Two cents per gallon are added to the State Highway Road Construction and Improvement Fund;
- One cent per gallon is added to the State Highway Fund;
- One cent per gallon is added to counties, cities and towns by the Motor Vehicle Highway Account Formula;
- $25 million is divided between local units of government and the Indiana Department of Transportation (60 percent is given to local units of government, while 40 percent is given to INDOT); and
- The remaining money is added to the Motor Vehicle Highway Account and the Highway Road and Street Fund, State Highway Fund and Local Road and Street Account.
Senator Head said, “My office is available as a resource to you. Feel free to contact me at Senator.Head@iga.in.gov or 800-382-9467 with any questions, comments or concerns you may have.”
