Dear Editor,

Americans for Prosperity informed citizens and lawmakers Thursday, Dec. 10, of another key fact in the gas tax debate: only 1/6 of revenue from the sales tax on gas goes to transportation.

By reprioritizing gas tax revenue to its intended purpose, Indiana can better fund road construction and not raise the state’s high, 51.7 cent combined tax burden on gasoline purchases.

“Indiana should fund our transportation needs simply by making sure existing gas tax revenue is being spent on roads and infrastructure,” explained Justin Stevens, Indiana state director of Americans for Prosperity. “The state has a significant amount of revenue derived from the sale of gasoline that is not being spent on roads.”

As AFP explained last week, Indiana is one of 12 states that levies sales tax on gasoline, in addition to the gas tax, giving it one of the highest combined taxes on gas in the nation. However, just roughly 1/6 of sales tax revenue from the purchase of gasoline goes toward transportation spending. By reprioritizing existing gas tax revenue towards roads, bridges, and other transportation needs, lawmakers can ensure motorists have safe and reliable infrastructure without imposing higher taxes.

Stevens continued: “Hoosiers should expect lawmakers make sure existing gas tax revenue is spent correctly. Reviewing budgets, analyzing expenses, cutting waste and reprioritizing funding to its intended purpose is a key part of our lawmakers’ jobs. They should start the transportation funding discussion by focusing on current spending.”

Justin Stevens
Americans for Prosperity