SOUTHERN INDIANA — State legislators are hoping new laws they're proposing can alleviate the burden from those paying tolls to cross the Ohio River.
Three bills concerning tolls are expected to be filed by Southern Indiana lawmakers for the General Assembly's 2017 session, which convenes this week.
Sen. Ron Grooms, R-Jeffersonville, is filing two bills that could lend relief for individuals and businesses through state income tax returns.
One bill would allow a tax deduction of up to $500 dollars for a person that accumulates more than $100 a year on tolls. To be eligible, a person has to live in Clark or Floyd county, have a RiverLink account and file an Indiana state income tax return. A tax deduction decreases the amount of taxable income.
"My only interest is providing relief for those people who work and have to travel the bridges every day to and from work who file a state income tax return, and give them some break on those costs that they didn't anticipate in their budget perhaps two and three years ago," Grooms said.
" ... A toll of $2, $4, $20 a week, for someone to go to work who makes $15 an hour, [that] has a much greater impact on their budget than someone who makes $40 an hour."
Another bill authored by Grooms would provide a $1,000 tax credit to businesses that spend more than $1,000 on tolls per calendar year. Businesses must also have RiverLink accounts and file an Indiana tax return. A tax credit reduces the amount owed to the federal government after taxes are filed.
Grooms filed the same two bills a year ago, but they weren't heard in committee.
"I'm hopeful that it will get a hearing and a committee," he said.
The difference this year is that the General Assembly is turning its attention in greater earnest to funding mechanisms for state infrastructure — and the burdens they may pose on taxpayers.
"Without a tax increase or some additional fee to require the vehicle that's being driven and used on the roads to pay more money, Indiana will continue to struggle to keep up with proper maintenance, construction and expansion of its roads, bridges and highways," Grooms said. "There is no debate about that issue."
Studies conducted this summer will recommend programs to handle the funding shortfall. A report should be released this month, Grooms said.
Rep. Ed Clere, R-New Albany, hopes to reintroduce a bill that is designed to keep non-regular bridge users accountable for paying tolls.
A study released this summer estimated that initial leakage rates — leakage occurs when a license plate can't be identified by tolling video equipment — will be as high as 15 percent for drivers without transponders.
That rate is expected to drop to 10 percent by 2019 and 5 percent by 2022.
A bill to mitigate leakage was introduced last year by Clere and Rep. Steve Stemler, D-Jeffersonville, but didn't go anywhere.
If passed, the law would establish stricter penalties for failure to properly display a license plate. RiverLink, the all-electronic tolling system, bills those without accounts by capturing pictures of licenses plates.
The money from the enhanced penalties would be earmarked for repaying the $2.3 billion Ohio River Bridges Project. Tolls on the Kennedy, Lincoln and Lewis and Clark bridges will fund the majority of the project, split evenly between Kentucky and Indiana.
"I'm hoping we'll get some interest in that this session," Clere said. "To me, it's a common sense approach that would help ensure that everyone pays their fair share."
The Indiana Senate convenes Jan. 3, and the House convenes Jan. 4. The session ends April 29.