Tractor-trailers and other vehicles on Interstate 65 in Jeffersonville, Ind. (John Sommers II for Transport Topics)
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Indiana lawmakers voted to seek federal authority to become the first state that charges tolls on interstate highways, a move taken over the objections of state truckers.
The 33-page bipartisan bill signed in May by Gov. Mike Braun contains a tolling clause along with sections addressing bridges, low water crossings, transportation infrastructure bonds, a railroad tax credit, and a wheel and excise surtax.
The so-called road funding bill was introduced Jan. 21 by state Rep. Jim Pressel (R) and co-authored by three other House Republicans. It arrived in the state Senate in March, where it received backing from two Republicans and two Democrats.
Tolling stipulations focus on two key points:
- Allowing Indiana to ask the Federal Highway Administration for a waiver allowing toll lanes on interstate highways within its boundaries.
- Removing a past requirement that the General Assembly must first pass legislation to approve tolling.
The approved legislation cited a past tolling study that estimated Indiana could reap $38.2 billion over a 22-year period starting in 2029.
Representatives from the Indiana Motor Truck Association at its Call on Washington in May. (Indiana Motor Truck Association via LinkedIn)
The U.S. government generally prohibits toll charges on federal-aid highways like interstates through Title 23 of the U.S. Code (Highways). However, FHWA says Title 23 and other statutes enable it to approve tolling in special programs.
Gary Langston, president of the Indiana Motor Truck Association, told Transport Topics that truckers there have concerns about possible tolls on interstates for a variety of reasons.
The administrative cost to collect fuel tax is around 1% versus at least 15% to collect the revenue through tolling. The percentage of total tolling revenue used to cover total facility costs is above 30%.
Gary Langston, president of the Indiana Motor Truck Association
“Hoosiers need more information about the validity and efficiency of both past and future road funding decisions before they will buy into this controversial new revenue stream,” Langston said. “Contrary to what many would have the public believe, an increase in transportation costs does eventually make its way to increased consumer prices. Tolling technology has proven to be an inaccurate, expensive and likely irreversible solution that would have a significant impact on both businesses and private citizens in Indiana.”
He said truckers have been told the tolling revenue would fund highway expansion projects. While IMTA supports the concept and favors less congestion through increased capacity, its members believe the decision to toll is premature, he said.
In testimony about the bill, Langston stressed that tolling contains lesser-known charges that cause greater financial burdens on truckers than traditional fuel taxes.
“The trucking industry in general, and particularly in Indiana, has not had a positive history with tolling. Tolling remains an expensive, inefficient and inaccurate process when compared to fuel tax collection,” Langston told lawmakers. “Most trucking companies of any size have hired outside services to track and retrieve the tolling charges that have been assessed in error, often in the tens and hundreds of thousands of dollars. The administrative cost to collect fuel tax is around 1% versus at least 15% to collect the revenue through tolling. The percentage of total tolling revenue used to cover total facility costs is above 30%.”
The Indiana Chamber of Commerce supports the legislation. In a May “Final Legislative Report,” the group said, “Providing much-needed infrastructure funding for local governments by increasing flexibility in transportation taxes and targeting grant opportunities is beneficial. This bill would also provide local units with a means of securing additional revenue for road and bridge projects, enhancing the state’s transportation network and economic development.”
2025-Final-Leg-Report-Scorecard
Langston pointed out that shortly after passage of the 2017 highway bill, the Indiana Toll Road lease was unexpectedly renegotiated. “Toll rates were raised by 35% on only trucks. The state received $1 billion for the willingness to open and renegotiate the lease. Unfortunately, some of the increased tolls truckers paid were diverted to pay for bike trails, walking paths and broadband,” he noted.
He also underscored how truckers transport more than 80% of the goods for the daily needs of Hoosiers and that Indiana collected a record $1.73 billion in fiscal 2024 in total gas and fuel use taxes.
“If a truck travels from Ohio, through Indiana and into Illinois and doesn’t stop in Indiana, it still pays Indiana fuel tax based on the miles driven in the state. No free rides for trucks,” Langston said. “Diesel is not going away anytime soon. Although much more environmentally friendly, trucks are still hauling America’s freight at 6.5 to 7 mpg, and vehicle manufacturers tell us it will be at least a decade before an acceptable alternative to diesel will even be a possibility. Also, and most importantly, trucks are the only vehicles on the road that are already paying for every mile they drive on every road throughout the United States.”
Indiana officials have been toying with the idea of tolling for several years. The Indiana Department of Transportation issued a “Statewide Interstate Tolling Strategic Plan” in 2018. It declared Indiana a national leader in determining how to toll its entire interstate system for all vehicles.
Indiana 2018 Tolling Strategic Plan
“If Indiana decides to implement a statewide interstate tolling program, it would take at least four years to collect the first toll and decades to complete a comprehensive statewide program,” the plan stated. “Implementing a statewide interstate tolling program would be complicated. It would involve a wide range of technical, social, environmental, financial and regulatory challenges.”
