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Indiana’s sales tax charged on gasoline will barely change next month despite the recent sharp increase in gas prices.
A calculation released Thursday by the Indiana Department of Revenue sets the state sales tax charged on gas at 24 cents a gallon for June. The rate charged during May is 24.1 cents a gallon.
The steady sales tax rate means the state’s total gas tax will remain about 56 cents per gallon.
Many Indiana Democrats say that since state government has nearly $6 billion in cash reserves, Republican Gov. Eric Holcomb should issue an emergency order suspending the gas tax or call a special legislative session so the GOP-dominated Legislature could take such action.
Holcomb says he doesn’t have authority to suspend the taxes.
Indiana has two taxes on gasoline—the 7% state sales tax and a tax directed to infrastructure projects. The road projects tax that’s currently 32 cents a gallon is set to go up by 1 cent in July.
The sales tax charged at the pump is calculated monthly and the state revenue department determines it based on the statewide average retail price over a monthlong period.
Indiana’s average pump price hit $4.62 for a gallon of regular as of Thursday, up from $3.93 a month ago, according to AAA.
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The governor and the state legislature should take action immediately to reduce the tax on gasoline. Their stance makes no sense and is an undue burden on everyone, especially the poor. On a national level the Republicans are blaming much of the inflation on the Democrats and rightfully so, but here in Indiana where the Republicans have the majority, there is no excuse to not take action.
Exactly what is the reason why the tax cannot be temporarily suspended? Or at least compromise and reduce the 7% sales tax. This would go far to take the excessive burden on families, and simply everyone. If the governor does not have the authority to make this decision, then who does? This entire gauging gas situation is insanity. Our country was energy independent. Let’s Go Brandon.
The answer to your question, Christine, is easy. Politicians never met a tax they didn’t like. They’ll never take a tax off. The same reason you don’t get to see your total paycheck and send in your tax payment every month or quarter. How long do you think that would last before there would be a revolt if you knew how much tax was being withheld!
First of all, oil is a global market. Energy independence has no impact on the price of oil or gas in the U.S., unless you believe (falsely) that US energy companies would willingly sell their product to the U.S. for less than they could get selling it to other countries. Its a global market and price is determined by global supply and demand. Energy independence would protect us from any kind of an embargo directed at the US, but that is not happening.
Two, if you measure energy independence as the US producing more energy (oil, gas, coal, etc) than we consume, we are still energy independent. For example, the US exported more petroleum than we imported in 2020 & 2021, and likely in 2022. The only reason we dont export even more energy is because when energy prices are low it is no longer profitable to extract in the US. Higher oil prices only encourage energy production in the US although the big energy companies aren’t willing to make that significant investment out of concern higher energy prices are only temporary and will fall again and they will lose money on the investment.
Apart from that I agree that Indiana’s GOP led government does not appear interested in helping to ease the financial pain of high energy costs for their constituents.
Energy independence means we produce more than we use. We will alway import Saudi and Venezuela oil, they have refineries here.
The is why they are begging other countries to pump more, but they discourage oil production here.
This whole situation of high fuel costs is a Biden and Democrat created problem. For the states, including Indiana and other republican states, to make Biden look good with the midterm elections coming up is not in the cards. Once the states would cut the gas taxes, folks would forget about who caused the problems to begin with. It’s not the state problems that caused this ideological inflated pricing, but the White House and the radical members of the Democrats. This rise in pricing started long before any war in Ukraine, and was decided the day Biden took office. No, Indiana should not lower its gas tax, the voting public must realize and remember who and what party caused this mess, and vote accordingly.
Kevin – Trump lost. Lets move on.
So, what exactly are Republicans proposing to fix inflation? Also, how are Democrats responsible for worldwide inflation? I can’t wait to hear a detailed response.
Kevin – NOTHING you said is true.
There is no way the Republicans will do it, they want high gas prices until the mid-term elections.