Along with increasing its diesel tax by 10 cents, Indiana recently approved a 10-cent increase to a surcharge tax for trucks.
Effective July 1, the state’s motor carrier surcharge will be 21 cents per gallon along with the diesel tax rate that will be 26 cents per gallon. Local trucking executives indicated the increases help to illustrate the industry pays for a significant part of infrastructure maintenance projects.
The new rates were signed into law on April 27 by Gov. Eric Holcomb (R). He said the funds will help support road repairs.
“Indiana lawmakers passed an infrastructure plan of historic proportions, putting our state in a strong position to finish what we started, maintain what we have and build for future growth. We did this all while maintaining a balanced budget and responsible reserves that will continue to diversify and grow our economy,” Holcomb said. “This achievement is marked by the spirit of collaboration that made this session a tremendous success for Hoosiers.”
The law positions Indiana as one of the most recent states to increase its fuel taxes, and it is expected to provide $1.2 billion for roadway infrastructure by 2024. For several years, state transportation officials have criticized roadway conditions. A proposed fee on new tire sales was ultimately not approved.