May 19, 2022

Indiana's total gas tax staying 56 cents a gallon for June

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Indiana’s sales tax charged on gasoline will barely change next month despite the recent sharp increase in gas prices.

A calculation released Thursday by the Indiana Department of Revenue sets the state sales tax charged on gas at 24 cents a gallon for June. The rate charged during May is 24.1 cents a gallon.

The steady sales tax rate means the state’s total gas tax will remain about 56 cents per gallon.

Many Indiana Democrats say that since state government has nearly $6 billion in cash reserves, Republican Gov. Eric Holcomb should issue an emergency order suspending the gas tax or call a special legislative session so the GOP-dominated Legislature could take such action.

READ MORE: Indiana Democrats renew push for gas tax suspension amid record high prices

Holcomb says he doesn’t have authority to suspend the taxes.

Indiana has two taxes on gasoline — the 7% state sales tax and a tax directed to infrastructure projects. The road projects tax that’s currently 32 cents a gallon is set to go up by 1 cent in July.

READ MORE: Indiana Republicans show no signs of moving for gas tax cut

The sales tax charged at the pump is calculated monthly and the state revenue department determines it based on the statewide average retail price over a monthlong period.

Indiana’s average pump price hit $4.62 for a gallon of regular as of Thursday, up from $3.93 a month ago, according to AAA.

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