Indiana bill would move fuel tax up with inflation

| 1/31/2003

A new bill in Indiana's House of Representatives would change the way the state collects fuel taxes, adjusting the tax upward each year to keep up with inflation and basing it on the number of miles vehicles travel in the state.

Under the bill, HB1762, the tax would never drop below its current 18 cents per gallon, or go down once it increased.

Highway lobbyists are pushing hard for the bill, The Indianapolis Star reported, while groups representing motorists are offering opposition.

The bill was introduced and moved to the Committee on Ways and Means Jan. 21. No votes have yet been taken on the bill, according to the Legislature's Web site. The Star reported recently that House Ways and Means Chairman Bill Crawford, D-Indianapolis, had not scheduled a hearing yet. However, Sen. Lawrence Borst, R-Greenwood, who chairs the Senate Finance Committee, said he would discuss the bill – if the House passes it.