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House approves cigarette, gas tax increase for road funds

February 2, 2016

Indiana residents would pay more for gasoline and cigarettes but less in state income taxes under a bill the House approved Tuesday.

The chamber's road-funding plan passed on a 62-35 floor vote.

House Speaker Brian Bosma has backed the bill, which Gov. Mike Pence and conservative groups criticize for raising Indiana's taxes. Under the bill, the cigarette tax would increase by $1 per pack and the 18-cent-per-gallon gas tax would go up by 4 cents.

The bill calls for the state income tax to be cut by 5 percent over eight years.

The bill moves to the Senate, which has its own plan backed by Pence that would earmark part of the state's surplus for road improvements as a short-term solution to state infrastructure funding.

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