House Bill 1687
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DIGEST OF INTRODUCED BILL
Gasoline tax. Replaces the per gallon tax on the use of gasoline with a 1.17 cent per mile tax for 2004 and a 1.29 cent per mile tax for 2005. Provides for the annual conversion of the per mile tax to a per gallon rate based on a formula involving the annual motor vehicle miles of travel for Indiana and the annual total certified taxable gallons of motor fuel. Provides for an annual adjustment to the per gallon conversion rate for inflation. Provides that the rate may not exceed $0.20 in 2004 and $0.22 in 2005. Provides that the per gallon conversion rate may not be reduced below the conversion rate of the previous year. Provides for distributions to match: (1) 2003 distributions from the motor vehicle highway account and the local road and street account; and (2) county wheel tax and county motor vehicle excise surtax collections. Eliminates the local road and street account. Requires at least 25% of the distributions from the motor vehicle highway account to be used for the purposes of the local road and street account. Makes conforming changes. Imposes a supplemental gasoline tax if the federal gasoline tax is reduced below the per gallon rate imposed on January 1, 2003.
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| ||In Committee - first House|