Indiana’s sales tax on gasoline is poised to jump by 6.1 cents per gallon in May if Gov. Mike Braun doesn’t extend his temporary suspension of the tax.
The amount charged for the 7% state sales tax on gasoline is determined monthly by the state Department of Revenue based on the statewide retail gas cost average.
The agency announced Monday that the rate which stood at 17.2 cents per gallon when Braun announced its suspension April 8 would increase to 23.3 cents for May.
Braun’s suspension continues until May 8, which is when he said he would consider whether to extend his executive order.
Indiana’s statewide average for a gallon of regular gas stood at $4.14 when Braun suspended the sales tax.
That average had fallen to $3.76 as of Monday, according to AAA, after costing $2.68 in late February before President Donald Trump launched the war with Iran that prompted a worldwide spike in oil prices.
Taxes on fuel in Indiana are made up of the federal gas tax of 18.4 cents per gallon, the state excise tax of 36 cents per gallon and the 7% state sales tax.
State Rep. Greg Porter, the top Democrat on the budget-writing House Ways and Means Committee, called Monday on Braun to also suspend the excise tax.
Suspending both state taxes would increase the savings on a 16 gallon fill up from $2.75 to $8.51.
“I support the sales tax suspension, but Hoosiers need more than a couple of dollars,” Porter said in a statement. “Prices have started to fall. But gas is expected to stay above $3 a gallon for the rest of the year. Prices go up like a rocket and come down like a feather.”
Braun said in his initial announcement that he would need legislative permission, but Porter contends there is nothing in the law differentiating between the two taxes — only past precedent.
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