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Lawmakers explore new, expanded road funding options — include tolling, delivery tax

By Brandon Smith

Posted January 28, 2025

Image of a "Road Closed" sign on a road.

Local governments across Indiana will need nearly $1 billion in new funding per year over the next decade just to maintain roads and bridges in their current condition, according to the Indiana Local Technical Assistance Program. (WFIU/WTIU News)

Indiana House Roads and Transportation Committee Chair Jim Pressel (R-Rolling Prairie) proposed a bill Monday that provides a variety of new or expanded options for state and local road funding.

What followed were stakeholders agreeing to the need for more funding, but objecting to the options they’d be affected by.

HB 1461 includes expanded authority to toll Indiana interstates, a new local tax option on retail deliveries, and increased pressure on local governments to pass maximum wheel and excise taxes.

READ MORE: Local roads, bridges need billions of dollars a year over the next decade to maintain conditions

Gary Langston lobbies for trucking companies. He said the funding emergency the state says is coming isn’t as imminent as many think. And he objected to any new tolling.

“Increasing the cost to move freight is a precursor to increased consumer prices,” Langston said. “The impact will ultimately be seen on your dinner table and on the goods you purchased.”

Join the conversation and sign up for our weekly text group: the Indiana Two-Way. Your comments and questions help us find the answers you need on statewide issues, including our project Civically, Indiana and our 2025 bill tracker.

Natalie Robinson lobbies for small businesses, which she said will be particularly hurt by a tax on deliveries.

“Small businesses might face challenges if larger competitors can absorb these fees without passing them on to consumers,” Robinson said.

The measure would also prohibit the Indiana Economic Development Corporation from providing economic development incentives to private companies unless those companies agree to help pay for any state and local infrastructure impacted by their project.

Indy Chamber of Commerce lobbyist Jenna Bentley said that raises issues.

“Could delay and stall important projects,” Bentley said.

The bill will likely be up for a vote in future weeks.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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