INDIANAPOLIS -- Statehouse Republican leaders are praising their plan to raise taxes on motorists in order to pay for road infrastructure improvements across Indiana.
Speaker Brian Bosma and Senate leader David Long beamed with pride during a Thursday news conference on the compromise agreement reached this week.
The plan, which will go before the full House and Senate for a vote on Friday, would raise fuel taxes by 10 cents a gallon while charging a new $15 annual fee on all vehicles, a $150 annual fee on electric vehicles and $50 for hybrids registered in Indiana.
That will pump an average yearly amount of about $1.2 billion into improvements for the state's crumbling roads and bridges.
Overall, the plan is expected to generate $1.2 billion in new annual revenue for state and local roads and bridges beginning in 2024
Most of the money will go to state roads, leaving the local governments with less than they had hoped for.
The bill also would authorize the governor to seek federal approval to implement tolling on interstate highways.
Governor Eric Holcomb released the following statement in reaction to the plan:
"I congratulate state lawmakers - particularly House Speaker Bosma, Senate President Pro Tem Long, state Reps. Soliday and Brown, and state Sens. Kenley and Crider - for their plan that will strengthen our global reputation as the 'Crossroads of America.' This plan provides the tools necessary to maintain what we have, finish what we started, and invest in the future."