LOUISVILLE, Ky. (WDRB) -- Indiana legislators may extend the annual 1-cent increase to the state's gas tax, FOX59 reported this week.
Indiana passed a law in 2017 allowing a gas tax increase of up to 1 cent per year from 2018-24. An amendment to House Bill 1050 would extend the increase to 2025.
The state's gas taxes totals to 52 cents per gallon in April, which is determined by the average price of gas in Indiana. The rate changes every month.
"We’ll kind of probably see that go up, typically between now and, say, peak summer prices, they tend to rise about 5%," said Kyle Anderson, an economist at the IU Kelley School of Business.
Along with the sales tax, Indiana's gas excise tax is 33 cents per gallon.
According to state data, the annual cent increase generates around $30 million in revenue.
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