Governor Mike Braun will further extend a pause on Indiana’s gas and excise taxes in an effort to keep Indiana gas affordable.
The Governor said the longer gas holiday is allowed under a state energy emergency statute.
Braun had previously said he would only be able to extend the pause on gas taxes for sixty days. Now, the Governor said the pause can last for up to 120 days without input from the state legislature.
“We can afford to do it, and we got a plan for it,” Braun told reporters during a press conference on Tuesday.
According to the Governor, the suspension of both the state Gas Usage Tax and Gas Excise Tax saves Indiana residents roughly 62 cents per gallon at the pump.
“Hoosiers now have the least expensive gas in the country,” Braun said. “Begs the question - how long can you do it?”
Braun acknowledged that the suspensions are costing the state roughly $140 million every month, which the Indiana Department of Transportation should be able to cover with reserves.
“INDOT has funds to cover all lost revenue from past and current emergency tax holidays, without impact on current or planned projects and operations,” said Natalie Garrett, Communications Director for the Indiana Department of Transportation, when reached for comment.
But there are questions about road funding down the line.
“Long-term road funding is an issue the legislature is going to have to take up, and all Hoosiers are going to have to have that discussion,” Braun said.
House and Senate leadership both released statements supporting Braun’s move, but Sen. President Pro Tem Rodric Bray (R-Martinsville) also seemed concerned about long-term costs to the state.
“Since this tax revenue is dedicated to the upkeep of state and local roads, we must continue to be good stewards of our state's financial resources and find additional efficiencies to ensure we are still able to adequately provide the road infrastructure Hoosiers depend on every day," Bray said in a statement.
The extension will now expire in July, after which Braun will have the opportunity for one final extension into August. Following that, a special session would need to be called to allow any further extensions.
Braun seemed to indicate that he hadn’t discussed a special session with lawmakers, but felt it was unlikely to happen.
“We're the only state that's really done this,” he said. “But in terms of doing anything beyond this, no, we haven't talked about it.”
Senate Democrats also supported the relief but noted that gas prices were rising because of U.S. policies in the Middle East, which the governor and his “political allies support.”
“We should be asking why families are being put in this position in the first place and what we can do to prevent the next affordability crisis,” Sen. Shelli Yoder (D-Bloomington) said in a statement. “Effective leadership means addressing the root causes of rising costs, not just reacting after Hoosiers have already been left paying the bill."
Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org
