Republican Gas Tax Takes Effect July 1-Fill Up Today or Pay Up Tomorrow

Indiana Republicans push gas tax that is among highest in nation despite cutting corporate income tax nearly in half. Motorists will pay an additional 11 cents per gallon on July 1, 2017.

June 30, 2017-In a misguided effort to force you out of your car, Republican legislators passed a 10 cent per gallon gasoline tax that takes effect on July 1, 2017. Republican Legislators who have cut the corporate income tax from 8.5% to 4.9% in a series of moves in recent years, say the increase in the gasoline tax is necessary to fund road construction. The legislation passed by the Republican supermajority will provide an increase in the gas tax that equates to at least 20 cents per gallon by the time it is fully implemented. Additionally, motorists will pay an additional 1 cent in sales tax on the increased tax which is included in the price of gasoline, for an immediate increase of 11 cents per gallon. In addition to the gasoline tax, Republican leaders passed a $15 per vehicle increase in registration fees for gasoline vehicles and a $150 increase in registration fees for electric vehicles. A plan to put tolls on Interstates throughout Indiana is being studied and may be implemented also.

Local Republicans Hal Slager, Ed Soliday, Julie Olthoff, and Mike Aylesworth were all on board the plan to increase the cost of driving through increased taxes and tolls. Doug Farr, a consultant for the Slager/Soliday supported Northwest Indiana Regional Development Authority breaks down the plan as simply as possible by saying “I don’t mind if people want to drive, they should just be willing to pay for it.” Farr explains that “urbanism has this one sort of hidden metric and that is vehicle miles traveled.” Farr goes on to challenge leaders to reduce vehicle miles travelled by 50% by the year 2030. Despite spending millions on consultants, Slager and Soliday have not funded a study to determine how their plan would affect employment in auto related industries in the region.

See also, WAR ON CARS: Soliday Bill Would Automatically Increase Gas Tax Every Year

WAR ON CARS: Visclosky Consultant Says “Hidden Metric” is What $5B Transformation Plan is Really About

Will Visclosky’s War on Cars Parallel War on Coal


  1. With all of these taxes going up, it makes me wonder what happened to the lottery monies? When the lottery was first instituted in the late 1980’s, it was touted as way to pay for the roads and other transportation upkeep through the “BUILD INDIANA” fund.
    Well somewhere in the last 27 years, that money has not been allocated correctly since now we have to take a rise in taxes and fees in order to maintain the roads.
    10 years ago when Mitch Daniels leased the Indiana Toll Road for over 3 billion dollars, that money was again touted as the savior of the Indiana Highway system,
    That money seems to have disappeared also.
    Is it possible that lowering the corporate income taxes WHILE not lowering expenses had something to do with this great rise in “user fees”?
    Is it possible that funding teacher and police/firefighters pension funds to the tune of 60 million dollars every year is the reason that we have to raise these “user fees”?
    Are the pension funds not gaining interest each year?
    is it possible that every one of the statewide tax abatements and TIF districts are being funded by our road taxes?
    Over 1 billion dollars was raised by The Hoosier Lottery in 2016. Even after all the “payouts” to winners, retailers, pension funds and the Build Indiana fund, there appears to be a surplus of money that is unaccounted for.
    At least we can say one thing positive—WE ARE NOT ILLINOIS!

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