INDIANAPOLIS, Ind. (WOWO): A plan to help pay for Indiana’s roads cleared its first legislative hurdle earlier this week.
Republicans say House Bill 1002, which includes a 10-cent hike of the state’s gas tax and new registration fees on all vehicles, would raise abou $300-million in fiscal year 2018 and over $500-million the following year as the state tries to figure out a plan to pay for road repairs and upgrades.
Democrat House Leader Scott Pelath says it could hurt the average Hoosier.
“One thing that’s giving us some angst is the exacerbation of tax shifts that will be advanced by this measure.”
He adds that while sacrifices may be needed to solve the problem, this bill would focus on middle-class people, when the burden should be “shared” instead.
Republicans portray the package as a “user fee” plan — the more you drive, the more it costs you. The bill has created an unlikely alliance of opponents, with conservatives like Americans for Prosperity Indiana President Justin Stevens joining Democratic legislators in criticizing the tax hike.
“We are asking to make roads a priority by freezing all other state spending, and using the projected increase from revenue,” Stevens said.
The Roads Committee approved the plan 8-5, with Fort Wayne Republican Bob Morris joining Democrats in voting no.
