Indiana Gas Tax Hike Starts July 1

Friday, June 22, 2018 at 11:49 AM

The increase is minimal compared to last year.

(Indianapolis, Ind.) – Indiana’s gas tax is increasing again this summer, but not nearly as much as last year.

In 2017, lawmakers passed a road funding bill that would raise extra funds to repair the state’s crumbling roads and bridges by increasing the gas tax by 10 cents per gallon.

Starting July 1, the state’s gas tax will increase one cent from 28 cents to 29 cents, reports WTHR-13.

According to the 2017 road funding bill, the tax will continue to rise every year by as much as one cent per gallon. The gas tax increase will be halted after 2024 without new legislative action.

Although this year’s tax increase is minimal, the money generated by gas sales is expected to create nearly $1.2 billion in revenue by 2024. The state plans to allocate the money to fund road and bridge projects at the local and state level.

Scot Imus, who heads the Indiana Petroleum Marketers and Convenience Store Association, says most customers won’t notice this year’s gas hike, but it’s also a yearly hike without a vote.

According to GasBuddy.com, Indiana’s current average gas price is $2.80 per gallon. At the same time last year, the average price was around $2.18 per gallon.

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