Signed by Governor Mike Pence

Vote Smart's Synopsis:

Vote to pass a bill that increases gas and cigarette taxes and appropriates additional revenue for road and bridge projects.

Highlights:

• Restructures the gasoline tax from $0.18 per gallon to $0.18 per gallon multiplied by a factor determined by the Consumer Price Index for Urban Consumers and the National Highway Construction Cost Index (Secs. 18 & 19).

• Increases the tax on cigarettes by the following amounts (Sec. 26):
• From $0.05 to $0.10 per cigarette, for cigarettes that weigh up to 0.003 pounds; and
• From $0.07 to $0.13 per cigarette, for cigarettes that weigh more than 0.003 pounds.

• Appropriates revenue from the taxes increased by the provisions of this bill to municipalities for road and bridge projects (Sec. 15).

• Reduces the state personal income tax from 3.4 percent to the following amounts (Sec. 7):
• 3.19 percent for calendar year 2019 through 2020;
• 3.15 percent for calendar year 2021 through 2022;
• 3.10 percent for calendar year 2023 through 2024; and
• 3.06 percent after calendar year 2024.

• Requires the Department of State Revenue to conduct a feasibility study on establishing tolls on Interstate 65, Interstate 70, and Interstate 80/94 by January 1, 2017 (Sec. 32).

Full Bill Text