Soliday Gas Tax to Increase July 1 While Republican Toll Road Plan Just Gets Started

Taxes on gasoline will increase by a total of 15 cents per gallon on July 1, 2018 compared to July 1, 2017 due to Republican gas taxes and sales tax increases.  Up next, Republican tolls on the highways.


June 21, 2018-As the Indiana Department of Transportation complies with a Republican mandate to <a href=””>push toll roads on the people of Indiana,</a> last year’s Republican gas tax increase provides for automatic annual increases tied to a formula which utilizes the consumer price index.  That formula will add another 1 cent in tax to the previous 10 cent increase in gasoline taxes in Indiana.  The tax will now be 29 cents effective July 1, 2018-up from just 18 cents a year ago today.  The gas tax could increase by as much as 10 cents per year for five years under the Republican tax.  The tax is tied to the consumer price index and indiana wages, so seniors and working poor who do not see raises are hit hardest by the increases.

In addition to the gasoline tax rising, the sales tax on gasoline will increase by .9 cents for July, 2018.  The Sales tax is calculated by averaging the price of gasoline throughout the State for the prior month.  According to the Indiana Department of Revenue, that average was $2.39 for the period May 16, 2018 through June 15, 2018 causing the sales tax to rise to 16.7 cents, up from 15.8 cents in June.  Since July 2017, the sales tax on gasoline has increased by 3.9 cents making the total Republican gas tax increase approximately 15 cents.

While Republicans claim the increased revenues will go to rebuild existing roads and bridges, they are spending a lot of money tearing up roads to put in roundabouts and other “traffic calming” measures.    Traffic calming measures are designed to slow vehicles and make it inconvenient for people to drive.




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