According to The Times of Northwest Indiana, the bill would increase the Indiana state gas tax 4 cents per gallon–bringing it to 22 cents per gallon—and automatically adjust it annually with inflation.
The bill would also increase the cigarette tax by $1 per pack. The legislation gives a little relief to taxpayers by reducing the state personal income tax rate from 3.23 percent in 2017 to 3.06 percent by 2025.
“We have a real problem. How we got here doesn’t matter. How are we going to move forward?” bill sponsor state Rep. Ed Soliday (R-Valparaiso) said. “This bill has had a lot of work, and people on both sides of the aisle worked together to get here.”
H.B. 1001 was passed by the Republican-controlled House easily with a 61-36 vote. However, all House Democrats and eight Republicans voted against the bill.
Soliday said tax hike opponents in the state shouldn’t be a concern because residents of Indiana will support a tax increase if it’s going towards something the state needs.
“It’s our responsibility to lead,” Soliday said. “We’re being very specific where the money is going to be spent; we’re being very conservative in how it will be spent, and 22 states have passed adjustments to the gasoline tax and those aren’t all liberal states.”
