BIC MATTERS – House Passes Long-term Road Funding Bill

TO: BIC Grassroots Network
FROM: Vicki Kitchin
DATE: February 16, 2017

BIC MATTERS: House Passes Long Term Road Funding Bill

House Passes HB 1002
Today, with a vote of 61-36, the Indiana House of Representatives passed HB 1002 which provides long-term, dedicated and stable funding for state and local roads and bridges. Roads and Transportation Chairman Ed Soliday explained the bill’s provisions, which include the following:

  • increases the gasoline tax, special fuels tax and motor carrier surcharge tax each by 10 cents to restore lost buying power since the taxes were last raised,
  • indexes all fuel tax rates annually using a formula that incorporates CPI-U and Indiana personal income growth (the indexing sunsets in 2024),
  • transfers the remaining 4.5 pennies of the sales tax on gasoline from the General Fund to the State Highway Fund,
  • implements a $15 annual statewide infrastructure improvement fee on all vehicles registered in Indiana,
  • implements a $150 annual statewide infrastructure improvement fee on all electric vehicles registered in Indiana and increases the current alternative fuel vehicle fee to $150,
  • requires INDOT to further study tolling and submit a waiver to the federal government to allow tolling on existing interstates (the first toll road implemented cannot be within 75 miles of an existing toll facility)
  • lowers the minimum population threshold applicable to the municipal wheel tax/surtax from 10,000 to 5,000.

HB 1002 would generate new road funding immediately with the amount gradually increasing each year. Click here for the latest fiscal analysis.

In a rare move, Indiana House Speaker Brian Bosma spoke on the floor in support of the bill. He emphasized that HB 1002 is the result of six years of study, relies on user fees and does not increase state debt. He thanked Chairman Soliday and Ways and Means Chairman Tim Brown for their work on the bill.

After about one hour of debate, the House voted 61-36 to pass the bill. Seven House Republicans and all Democrats voted against the bill. You can see the vote sheet here.

BIC sincerely appreciates the House Republican leadership and all caucus members who voted in favor of HB 1002. We ask all members to contact your legislator with a “Thank You,” if he/she voted “Yes” on the bill today.

Next Steps
HB 1002 now goes to the Senate where its sponsors are Senator Luke Kenley (R-Noblesville) and Senator Michael Crider (R-Greenfield). We do not expect a Senate committee to hear the bill until sometime in March. Now is the time to reach out to your Senator and encourage their support of HB 1002.

Town Halls
Thanks to all of you who have been contacting legislators and attending town hall meetings. We ask that you continue to attend these meetings, express your support for House members who voted yes today and encourage your Senators to support it. This week’s list includes meetings in Bedford, Valparaiso, Orleans, Greencastle, Fort Wayne, Goshen, Spencer, Frankfort, Decatur, Berne, Veedersburg, Lafayette, West Lafayette, and Princeton.

Send BIC a note with feedback from these meetings. Remember, we have a long way to go in this process.