Filling up your tank and buying cigarettes could soon mean taking slightly more out of your wallet.
That’s because Republicans at the Indiana Legislature are discussing doing something they rarely do: raising taxes.
Specifically, GOP leaders are backing a one-time increase in the gas tax, while a handful of other Republicans are proposing varying increases to the tax paid on cigarettes.
In a continuation of last year’s efforts to address funding needs for infrastructure, legislators are considering limited increases to the fuel taxes.
The proposal would raise Indiana gas and diesel taxes by 10 cents, and increase vehicle registration fees by $15.
As authored by a Republican from northern Indiana, the bill would also peg the gas tax to the rate of inflation but cap it at no more than 1 cent each year.
While nickels and dimes aren’t a big increase, though, they’re estimated to make a big impact on revenues.
Between the gas tax, the special fuels tax and the motor carrier surcharge, the Indiana Legislative Services Agency, which handles fiscal analysis and research for the General Assembly, estimates an additional $520.9 million in revenue in 2018, an additional $567.9 million in 2019, an additional $612.9 million in 2020 and an additional $655.4 million in 2021.