Gas Tax Increase

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(HB 1317, which would have increased the Gasoline Tax, did not get voted out of Conference Committee. The version of HB 1317 passed by the Indiana House of Representatives on February 5 would have raised the Gasoline Tax from 15 cents per gallon to 16 cents during 2003 and 17 cents after 2003. The version of HB 1317 passed by the Indiana Senate February 27 would have raised the Gasoline Tax from 15 cents per gallon to 18 cents during 2003, 20 cents during 2004, and 22 cents after 2004.)

E-MAIL SENT TO EVERY INDIANA GENERAL ASSEMBLY MEMBER ON MARCH 8, 2002:

Hello General Assembly Members,

If House Bill 1317 makes it way out of Conference Committee, you should vote NO so the gas tax will not be unwisely raised during a time of recession. Also, additional transportation funding is not needed.

As indicated on Page 145 of the State’s Comprehensive Annual Financial Report for the 2001 fiscal year, transportation funding increased from $1.035 billion in 1997 to $1.411 billion in 2001. The per capita increases was 30.8 percent, or 2.80 times more than inflation. This recent huge increase in transportation funding makes a gas tax increase completely unnecessary.

Your decisions regarding HB 1004, the omnibus tax and budget bill, will also make a gas tax increase unnecessary. The version of HB 1004 that passed in the House would generate $2.683 billion more in revenue than it would provide in tax relief through the 2004 fiscal year. The version of HB 1004 passed in the Senate would generate $933 million more in revenue than tax relief.

The House version of HB 1317 would increase the gas tax $65.4 million through June 30, 2004. The Senate version of HB 1317 would increase the gas tax $178.05 million. There is more than enough excess revenue in HB 1004 to provide the extra revenue sought in HB 1317.

Additional transportation funding up $178.05 million is not needed. Hoosiers need this money to help spend Indiana out of the recession. Please do not vote HB 1317 out of this committee.

Respectfully,

Aaron Smith

P.S. Your final vote on HB 1317 will be recorded in the Watchdog Indiana Legislative Voting Record, which can be found online at http://www.finplaneducation.net/legislative_voting_record.htm

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This page was last updated on 03/19/10.