Increased taxes on gas and cigarettes proposed by Indiana House Republicans for road funding

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By: Associated Press

INDIANAPOLIS (AP) — A road funding proposal from Indiana House Republicans would add a projected five cents a gallon to the state’s gas tax.

The plan outlined by House Speaker Brian Bosma would also add $1 to the state’s per-pack cigarette tax to help shift all of the current sales tax on gasoline to funding road projects.

Indiana’s 18 cents-a-gallon gasoline tax was last increased in 2002. Bosma said Wednesday that the plan would index the tax to the inflation rate and increased construction costs since then.

Bosma says some people will oppose the changes as a tax increase but believes most people realize Indiana is facing big infrastructure needs.

Republican Gov. Mike Pence and Democratic legislators have proposed road funding increases that money from the state’s reserves or long-term loans.