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Traffic travels at night along U.S. 41 north of U.S. 30 in Schererville.

INDIANAPOLIS — Hoosier lawmakers approved a road funding package Friday that will cost the average Indiana motorist about $63 a year in higher fuel taxes and new vehicle registration fees.

House Enrolled Act 1002, sponsored by state Rep. Ed Soliday, R-Valparaiso, aims to preserve Indiana's reputation as the "Crossroads of America" by raising an average of $915 million a year over the next seven years to be spent only on state and local road projects.

"I know it's going to be difficult for the motoring public...but, you know, you get what you pay for in this world," said state Rep. Mike Aylesworth, R-Hebron, who supported the measure.

Republican Gov. Eric Holcomb has said he intends to sign the proposal into law, which would mean:

  • Taxes on gasoline, diesel and other vehicle fuels go up 10 cents per gallon, starting July 1
  • The new fuel tax rates annually increase by up to 1 cent to adjust for inflation in each of the next seven years
  • By 2025, all sales tax collected on gasoline purchases will be spent only for roads
  • All vehicle owners pay a new $15 registration fee to specifically support local road projects, starting in 2018
  • Electric ($150) and hybrid ($50) owners pay an additional annual fee since their vehicles use comparatively less gasoline
  • The state will seek federal permission to toll existing interstate highways

"This plan provides the tools necessary to maintain what we have, finish what we started and invest in the future," Holcomb said.

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Statehouse Bureau Chief

Dan is Statehouse Bureau Chief for The Times. Since 2009, he's reported on Indiana government and politics — and how both impact the Region — from the state capital in Indianapolis. He originally is from Orland Park, Ill.