Gov. Braun extends pause on Indiana gasoline tax

By GARRETT BERGQUIST & GREGG MONTGOMERY
WISH-TV | wishtv.com

Braun

Gov. Mike Braun on Wednesday announced a continuation of Indiana’s gas tax suspension through Sept. 5, citing new global energy disruptions as the primary driver for rising fuel prices.

The governor said the statewide suspension will take effect Friday following the expiration of the current energy emergency. Braun attributed the price pressure to maritime conflict in the Black Sea due to Russia’s ongoing war with Ukraine, as well as wildfires in Canada’s oil-rich province of Alberta.

The governor’s authority to unilaterally suspend Indiana’s gas tax without legislative approval was set to expire on Thursday with no possibility of renewal. This would have exposed Indiana drivers to a nearly 60 cent per gallon price increase as the state’s use tax and excise tax both went back into effect. Braun said citing a different conflict allows him to reset the clock. He said he consulted with Attorney General Todd Rokita and with legislative leaders before he made his decision.

“It’s an additional burden that you’ve got to take into account,” Braun said. “The Iran conflict has got its own ebb and flow to it. When you had two other issues come into play, to me and the attorney general, as well as members from both chambers felt the same way.”

Under the governor’s plan, the state will tap into its reserves – currently projected to exceed $5 billion – to ensure that Indiana Department of Transportation projects and local infrastructure remain fully funded through fiscal year 2027. Braun said he reached an agreement with House and Senate leadership to prioritize using these reserves to replace lost gas tax revenue during the 2027 budget session.

Democrats said they disagreed with the governor’s reasoning in extending the gas tax holiday. Rep. Ed DeLaney, D-Indianapolis, went so far as to say it violates state law.

“Obviously, the governor figured out people were going to be angry (when the gas tax returned), so he came up with an excuse,” DeLaney said. “The excuse is the Canadian wildfires? Who is he kidding on this?”

Rep. Gregory Porter, D-Indianapolis, said neither he nor House Minority Leader Phil GiaQuinta, D-Fort Wayne, consider the governor’s order illegal, but he believes it’s stretching the definition of an energy emergency.

“I mean, we’re about Iran right now. He can stretch his tentacles and talk about Alberta or the Ukraine war that’s been going on for two or three years now,” Porter said. “He’s doing what he can within the letter of the law.”

Both Porter and DeLaney serve on the State Budget Committee.

The governor plans to reevaluate the situation in 30 days to determine whether the suspension should be extended. He said he has the ability to extend the tax holiday for up to 120 days.

This story was originally published by WISH-TV at wishtv.com/news/politics/gov-braun-extends-pause-on-indiana-gasoline-tax.