Second fuel tax increase proposal surfaces in Indiana

| 2/24/2003

Indiana legislators are considering a second bill to increase the fuel tax to pay for road work.

HB1687 would send part of the tax money raised to cities and counties to pay for local street work. Under the bill, the fuel tax in the state, which now runs 18 cents per gallon, could go as high as 20 cents by 2004 and 22 cents by 2005. In addition, the tax could never drop below its current rate, or go down once it increased.

Earlier this year, another bill, HB1762, also proposed fuel tax increases. That bill would adjust the fuel tax upward each year to keep up with inflation.