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

INDIANAPOLIS (WISH) — 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. Hoosiers appreciate gas tax holiday but would prefer a decline in price 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. State lawmakers react Various state lawmakers shared their reactions to Gov. Braun’s gas tax holiday. Senate President Pro Tem Rod Bray (R-Martinsville): “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.” House Democratic Leader Phil GiaQuinta (D-Fort Wayne) issued the following statement: “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.”