Indiana lawmaker seeks gas tax increase

| Tuesday, January 15, 2002

State Rep. Ron Liggett (D-Redkey) has announced he has filed legislation to fund maintenance and highway improvements across the state. If passed, the state's gasoline tax will increase by 10 cents over the next three years.

The revenue from the increase will go to the Indiana Department of Transportation (INDOT) and local government for improvements to highways, roads, residential streets and bridges. If enacted, the gas tax would increase from 15 to 17 cents in July 2002. In the second year, the increase would be from 17 to 21 cents. In 2004, the tax would increase to 25 cents.

Liggett said his legislation is based on a 2001 study that concluded an additional $200 million in revenue will be needed in each of the next 10 years to pay for road improvements. "The situation at the state level is just as critical," he said.

Indiana has the sixth-lowest gasoline tax rate in the nation. This is the third time in the past five years that a gas tax increase has been proposed. Last year, a 3-cent proposal died; in 1997, a 2-cent proposal was defeated.

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