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VIDEO: Here’s why Indiana’s gas tax will increase in July

INDIANAPOLIS (WISH) — Indiana’s state gasoline tax is set to go up by one cent this summer, under an annual increase that state legislators recently extended by three years.

The increase has happened every summer since legislators increased the tax from 18 cents to 28 cents.

That plan was set to expire in 2024, but it was extended in the state budget bill that was passed this year and signed by Gov. Eric Holcomb.

Indiana’s gas tax also includes a 7% sales tax that is currently at 20.3 cents per gallon.

Road projects and other infrastructure needs are the main use for the gas tax.

The tax will increase on July 1 to 34 cents per gallon.

That puts Indiana at 14th in the nation for the highest gas taxes.