Indiana gas tax going up 10 cents: Is Ohio next?

Don't Waste Your Money
Posted at 10:30 AM, Jun 29, 2017
and last updated 2017-06-29 11:08:00-04

Indiana may not be so welcoming for drivers after this weekend, as the state raises its gas tax 10 cents a gallon and its diesel tax over 20 cents on July 1.

RV owner Courtney Cook is going to pay more to fill up her thirsty camper, but she says it's OK if it helps fix Lawrenceburg's bumpy roads.

"I guess I don't mind, as long as there's improvements to the roads," she said.

Why a gasoline tax hike?

With cars getting better gas mileage, tax revenues are down at gas stations. So Indiana lawmakers voted to increase the gasoline tax for highway repairs.

But Wayne Kennett, the owner off Kennett's Marathon on Rt. 50 in Greendale, says the increase in gas taxes will hurt every station owner near the Ohio border.

"I'm disappointed that no one came out and started asking people along the state line, the stations, that this is going to affect us quite a bit," Kennett said. "It's going to hurt us quite a bit."

Ohioans, don't gloat

If you don't live in Indiana, don't gloat. This gas tax increase could eventually affect you.

Lawmakers in other states are also looking at raising taxes as a remedy for fixing their roads.

Indiana is one of eight states raising their gas tax this year: Pennsylvania and Tennessee are among the others.

Some Ohio lawmakers have raised the idea as well for repairing Ohio's roads. Though Ohio has not raised gasoline taxes in more than a decade, the Ohio Association of Mayors say it could raise tens of millions for highway repair.

Kentucky has variable gasoline taxes based on inflation and other factors, so they do go up a few cents every few years.

The National Conference of State Legislatures says the trend is not slowing down; states are not getting more road money from the federal government, and federal gas taxes have not increased since Bill Clinton was president.

But until Ohio or Kentucky raise their tax substantially, a fill-up will cost more in Indiana, and station owners like Wayne Kennett are not happy.

"It gives a person a reason not to come off (Interstate) 275, but to stay on it and go to another state," he said.

He worries business will drop on July 1, which means less money for his convenience store.

As always, don't waste your money.


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