Kankakee Valley Post, Volume 19, Number 12, DeMotte, Jasper County, 18 February 1949 — State Gas Tax Increase Being Urged [ARTICLE]

State Gas Tax Increase Being Urged

Cities, Counties Ask "Fairer Share" of Motor Vehicle Funds Indianapolis, Feb. 17. Somo 250 city and county official's descended on the Indiana Legislature late today to urge passage of a one-cent gasoline tax increase) and return to local units “a Liber share” of state motor vehicle funds. The action was decided on at :% luncheon sponsored by the Indiana “joint committee on street-highway program. J After the officials had “buttonholed” their Senators and Repre--1 sentatives Leaton Day, vice-chair-j man of the joint committee, said ( most lawmakers indicated they , favored a hike in the state gaso{line tax. - A bill increasing this tax from ! 4 to 6 cents a gallon is in tho j House Ways and Means A co*nI mittee. A one-cent increase would | raise about $8,500,090 additional i a year. Want 54% As a companion proposal the 'group decided tc back a Senate bill establishing a new formula for distribution of motor vehicle funds, which include the gasoline tax collections. The hill would give cities and towns 20 per cent, counties 34 per | cent and the State Highway department 46 pel (Ant. j In addition to the gas tax inI crease, the officials said they | would urge enactment of a bill increasing fees for motor cars and trucks. A bill in the House would boost these from $2 on passenger' vehicles to $350 c n heavy trucks. More Funds If the gas tax increase and heavied automobile and truck fees are approved by the Legislature, a spokesman for I ho committee estimated, the annual collection-) would rise from $44,000,000 to $60,000,000. On the basis of the new formula, cities and towns would g> t $12,000,000,000, co mti* s $20,400,000 and the Highway commission about $28,000,000. The group infernally derided to back two other f; ; f sals now before the Legislature. One < f theso wmuld end the ;nty highway bond moratorium and th* other would permit c m*, to issue bonds to match :*. < * ia I funds for farm-to-market i al . construction and repair.