Indiana Advances Interstate Tolling Plans

The Hoosier State is on a roll, infrastructure speaking. Having passed its largest highway investment package last year based on a 10-cents per gallon gas tax hike, it initiated a study to determine the revenue potential for tolling interstates.

3 minute read

July 12, 2018, 1:00 PM PDT

By Irvin Dawid


Lewis and Clark

Thomas Kelley / Shutterstock

Like so many landmark state transportation funding bills, House Bill 1002, which was signed by Gov. Eric J. Holcomb (R) on April 27, 2017, uses a diversified approach to raising infrastructure revenue by relying on new and increased user fees. While the 10-cents gas tax increase, which took effect July 1, 2017, raises most of the $1.2 billion in new revenue, the bill also added two new annual registration fees of $50 and $150 for hybrid and electric vehicles, respectively, that pay less, if any, fuel taxes to maintain roads.

Five more taxes and fees are listed as bullets in the April 28, 2017 post on the bill's passage. One just took effect on July 1: a one-cent gas tax hike resulting from indexing fuel tax rates annually until July 1, 2024.

Another potential revenue measure took a major step last month when "the Indiana Department of Transportation (INDOT) signed a $9.6 million contract with infrastructure consultancy firm HNTB to study how much revenue the state could raise by charging tolls on interstate highways," reports Linnea Lueken for The Heartland Institute. a free-market think tank, on July 10. "The company is expected to deliver its findings to INDOT by November 2."

No commitment to tolling the interstates

According to Kaitlin Lange, statehouse reporter for the IndyStar, under HB 1002, "Holcomb is permitted to draft a strategic plan 'if the governor determines that tolling is the best means of achieving major interstate system improvements in Indiana.'" 

"[The governor] wanted more information to make an informed decision and will use the strategic plan due Dec. 1 as a basis for that," said spokeswoman Stephanie Wilson. "If after reviewing the plan the governor determines that tolling is not the best option, the state won’t move forward with the remainder of the contract."

Lange describes the controversial aspects of tolling, with legislators expressing opposition to the tolling of interstates in their districts. She indicates that the Indianapolis area would likely be the best candidate to adopt tolling, which could be as early as 2021 according to HNTB's initial proposal.

 Federal Highway Administration (FHWA) waiver required

Last October, Planetizen asked, "Will Indiana be the first state to add tolls to its interstate highways?" Since then, Oregon has stepped into the competition, and like Indiana, credit goes to a forward-thinking transportation funding bill, House Bill 2017. In both cases, the state departments of transportation must apply for waivers from FHWA to toll all the lanes of the interstate highways.

A major difference between the two programs, though, is that INDOT is looking to toll the interstates to recoup revenue to maintain them in an era of dwindling federal gas tax revenue. In the Portland area, the Oregon Department of Transportation sees value pricing as a means to manage traffic congestion and fund driving alternatives.

Tuesday, July 10, 2018 in The Heartland Institute

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

30 minutes ago - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

1 hour ago - Streetsblog USA

Aerial view of flooding during Hurricane Helene in North Carolina.

‘Quality Work, Fast’: NC Gears up for Homebuilding After Helene, Trying to Avoid Past Pitfalls

The state will field bids to demolish, repair and rebuild homes in the mountains. After struggles in eastern NC, officials aim to chart a different course.

2 hours ago - NC Newsline

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.