INDIANAPOLIS – State Rep. Ron Liggett (D) (pictured), is seeking to increase Indiana’s state gasoline tax from 15 to 25 cents per gallon over a three-year period. The tax hike would eventually generate an additional $330 million annually and would be split between state and local road projects, officials told Reuters.
Liggett said if the tax stays where it is now, important highway improvements and repairs won't get done, adding that state officials have “a duty and a responsibility to keep the state competitive, and it's important to keep the roads in good shape.”
Gov. Frank O'Bannon already supports raising the cigarette tax. O'Bannon's press secretary told Reuters that while the governor sympathizes with the need for more highway money, he likely would give other proposals a higher priority.
In addition to the state fuel tax, Hoosier motorists also pay an 18-cent-per-gallon federal fuel tax and a 5 percent state sales tax.
