Road funding bill advances, but with multiple revenue generators taken out

A House committee unanimously advanced a bill Monday that aims to address Indiana’s road funding needs — but not before eliminating multiple provisions that would have generated new revenue.

The original bill, HB 1461, would have allowed counties to create a new tax on retail deliveries. It also would’ve required private companies to help pay for infrastructure needs in order to receive state economic development benefits.

Those provisions were stripped out of the legislation. Bill author, Rep. Jim Pressel (R-Rolling Prairie), said the initial measure was meant to provide a “plate of options.”

“And my goal was really to start multiple conversations — good, bad or indifferent," Pressel said.

READ MORE: Lawmakers explore new, expanded road funding options — include tolling, delivery tax
 

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Rep. Carey Hamilton (D-Indianapolis) proposed increasing the state’s excise tax rate, which she said hasn’t been raised in decades.

“Hope that we will continue to look for new ideas to bring dollars to the table,” Hamilton said.

The bill does include language making it easier for the state to begin tolling interstate highways. And it requires local communities to adopt wheel and excise taxes to be eligible for some state road funding.

Pressel said the legislation is a work in progress. It now heads for the House fiscal committee, Ways and Means.
 

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.