Indiana to see 1-cent gas tax increase

Lawmakers passed a bill last year that raised the 18-cent per gallon tax by 10 cents in order to fund road repairs.

Posted: Jun 21, 2018 2:08 PM

INDIANAPOLIS (AP) - A gas tax increase will soon go into effect in Indiana.

Lawmakers passed a bill last year that raised the 18-cent per gallon tax by 10 cents in order to fund road repairs.

The 1-cent increase that goes into effect next month was part of a smaller section of the bill. The increase is part of an annual inflationary adjustment that'll continue through 2024.

The American Automobile Association says the average price for regular unleaded gasoline in Indiana is $2.88, compared to $2.09 last year.

Emily Landis of the Indiana Department of Revenue says the special fuel tax rate will increase by one cent to 48 cents.

Landis says the gas tax increase is expected to generate $31 million annually.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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