This brief is adapted from notes taken by Documenters Andrea Drygas and Brooke Shoopman, who covered the Roads and Transportation Committee. 📝Read more about what happened.
Indiana House Representatives amended Indiana House Bill 1461, proposing several changes to vehicle excise taxes and related transportation funding. One of the changes will increase vehicle registration fees by 10% over the next four years.
Amendments to HB 1461 will create revenue for Indiana roads by increasing the wheel and vehicle excise tax maximum beginning July 1, 2025.
Representative Carey Hamilton said, “As we all understand, a funding crisis is on the horizon. It’s here today, certainly for Marion County.”
Hamilton said vehicle registration fees based on a vehicle’s age and value have not increased since 1996. “Thirty years later, we have the same fees that were reasonable in 1996. Maybe a slightly higher level would feel reasonable to folks today and generate some revenue.”
Amendment six would increase registration fees by 10% over four years, generating $60 million in revenue for roads and bridges.
Counties will be required to use a percentage of the increased taxes to repair and maintain roads and highways in Indiana. They would also be allowed to impose a fee on retail delivery vehicles like Amazon trucks which could lead to higher shipping costs.
Chairman Jim Pressel, author of the bill, said that he hopes the committee can continue to look for new ideas to bring money to the table.
What’s next?
- You can track the progress of HB 1461 on the Indiana Statehouse website.
- Learn about the steps a bill goes through to become a law in Indiana.
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