Gov. Braun declares 30-day gas tax holiday in Indiana

By ASHLEY FOWLER
WISH-TV | wishtv.com

Gov. Mike Braun on Wednesday said conditions in the Middle East now warrant suspending one of the two taxes Indiana charges on gasoline.

Braun, a Republican, declared a gas tax holiday and suspended Indiana’s sales tax on gasoline, currently 17.2 cents per gallon, for 30 days. The sales tax suspension does not apply to diesel fuel.

The sales tax suspension went into effect immediately but Braun said it will take a few days to implement before drivers start seeing a difference. He said drivers should start seeing savings at the pump late this week or early next week. Braun said he will review the situation after 30 days and might renew the sales tax holiday if he believes conditions warrant.

“I’m calling on gasoline retailers to ensure these savings are showing up at the pumps,” he said. “The state will be watching the pumps to make sure that savings are delivered to Hoosiers when they fill up.”

He said he is asking the attorney general to enforce restrictions against price-gouging if necessary.

Gas prices surged following the beginning of the war with Iran because Iranian forces blocked the Strait of Hormuz, the narrow waterway connecting the Persian Gulf with the Indian Ocean through which one-fifth of the world’s oil supply flows. Although the United States is by far the world’s largest oil producer, economists have previously told News 8 Americans still are paying higher prices because the blockage reduces the total oil supply on global markets. At 12:30 p.m., the average price for a gallon of unleaded gasoline in Indiana was $4.13, according to AAA.

Braun said he waited until now to act because he needed to see how things were going to turn out in the war with Iran. He said he also first wanted to weigh the sales tax suspension against savings from recent spending cuts and changes to state government. Braun said his office estimates Indiana will lose up to $50 million in revenue over the course of the 30-day suspension but he believes the state is in a good position to absorb the loss.

Rep. Gregory Porter, D-Indianapolis, the top-ranking Democrat on the House Ways and Means Committee, echoed that sentiment, pointing to the state’s $5 billion surplus. He said the governor should have suspended the gas tax sooner.

“This is what Hoosiers need right now, is to suspend the gas tax because of gas being over $4 a gallon,” he said. “The economic impact of that is yet to be seen but there is some relief and we’re very supportive of that. It is about affordability.”

Indiana levies two taxes on gasoline, the sales tax and an excise tax. The governor’s order only affects the sales tax. Lawmakers would have to come in for a special session in order to make any changes to the excise tax.

This story was originally published by WISH-TV at wishtv.com/news/indiana-news/indiana-declares-30-day-gas-tax-holiday.

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Responses from State Officials

“Senate Republicans have led on issues of affordability for years, resulting in one of the lowest costs of living in the country for Hoosiers, but the recent spike in gas prices is still leaving many Hoosiers feeling undue pressure on their budgets. With affordability top of mind right now, I’m supportive of temporarily suspending the state’s sales tax on gas.”

– Senate President Pro Tem Rod Bray (R-Martinsville)

 

“It’s clear that Hoosiers are in desperate need of economic relief, and I’m in favor of anything that can provide that, including suspending the gas tax. However, it’s been clear for a long time that Hoosiers are struggling, and it’s frustrating that it had to get this bad before Indiana Republicans took action.

“Back in 2022, House Democrats called for a gas tax suspension when gas prices soared due to the Russian invasion of Ukraine. Our calls went unanswered by the Republican supermajority, who instead allowed Hoosiers to continue draining their wallets at the gas pump.

“I want to be clear: House Democrats support this suspension, but Gov. Braun and Statehouse Republicans are only cleaning up a mess that they helped create. Hoosiers are tired of unstrategic and unfocused foreign wars that cost American lives, drive up gas prices and raise the cost of living.

“This isn’t leadership, it’s a last-minute scramble to keep up the Indiana GOP’s charade of being the ‘fiscally responsible’ party.”

– House Democratic Leader Phil GiaQuinta (D-Fort Wayne)

 

“It is evident that Hoosiers around the state are truly struggling with the recent significant increase in the price of gas.

“In a time where affordability is at the top of everyone’s mind, it is important for my colleagues and I to do whatever we can to ease financial burdens for our citizens.

“Many individuals in our district commute long distances to work each day, and the price of that transportation should never cause such a strain on Hoosiers’ wallets.”

– State Senator Jim Buck (R-Kokomo)

 

“House Republicans support Governor Braun’s actions today to temporarily suspend the sales tax on gas due to the recent increase in gas prices. We’ll always work to lower costs, protect the stability of working families and ensure Hoosiers keep more of their hard-earned money.”

– House Speaker Todd Huston (R-Fishers)

 

“With the suspension of Indiana’s gas tax for the next 30 days, my office will closely monitor fuel prices to guard against any potential price gouging.

“Hoosiers deserve the full relief intended by this emergency measure and we will use every tool at our disposal to ensure that the removal of the tax translates into lower prices at the pump — and that consumers are not taken advantage of during this time.

“If a consumer suspects that a gas station in Indiana is still charging tax during the suspension, they should file a consumer complaint with our office.”

– Attorney General Todd Rokita