Indiana road funding bill with tax hikes to be discussed by House Committee on Wednesday

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By: Associated Press

INDIANAPOLIS (AP) — The House Roads Committee is set to take up a proposal that would raise gasoline and cigarette taxes to pay for improvements to Indiana’s crumbling infrastructure.

The measure by committee Chairman Ed Soliday, a Valparaiso Republican, is supported by House Speaker Brian Bosma and is billed as a long-term alternative to Gov. Mike Pence’s short-term highway funding plan, which would not raise taxes.

Soliday’s proposal would raise cigarettes costs by $1 a pack and allow the state’s gas tax to increase with inflation, which would immediately hike the state’s 18 cent per-gallon fuel tax by about 4 cents.

Pence spoke out against the plan during his recent State of the State address. His proposal would borrow money and tap state budget reserves to boost short term spending.