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

Associated Press

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.

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.

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.

Tags:gas tax gasoline sales tax

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