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Gov. Braun extends suspension of Indiana sales tax on gas

Image by IADE-Michoko from Pixabay
Indiana Governor Mike Braun said Wednesday that he would extend his suspension of the state’s tax on gas. He also announced the suspension of the gasoline excise tax, which is $0.36 per gallon. Both suspensions are for 30 days.
“Making life more affordable for Hoosiers will always be my top priority. Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month,” said Braun at a press conference.
The gas sales tax is currently set at 23 cents per gallon for May while the excise tax rate is at 36 cents per gallon. This means Hoosiers would save nearly 60 cents per gallon when they fill up. The extension of both of these goes past Memorial Day weekend and into June, but it is the limit of Braun’s power.
“This is the longest I can suspend the gas tax under my authority. Another extension would require a special legislative session,” said Braun.
Indiana has one of the highest gasoline tax rates in the United States. This is the first time Braun has suspended both the gas excise and the gas sales tax.
In April, Braun suspended the 7% gas sales tax in Indiana for 30 days. At the time, the state’s gas prices averaged $4.13 per gallon, and the sales tax sat at roughly 17 cents. At the time of this writing, Triple A said the Indiana gas average was $4.76 per gallon.
Braun also announced plans to increase the mileage reimbursement rate for state employees who use personal vehicles for work-related travel. Specific details on the new rate will be released once finalized, his office said.
The Governor also reiterated that this is another example of how his administration plans on continuing to make affordability a central issue for his administration.
“That means tackling high healthcare costs. That means looking at utility rates too,” said Braun.
State Rep. Gregor W. Porter (D-Indianapolis) called what Braun did Wednesday the right move.
“I’m thankful that Braun is no longer hiding behind legal precedent and has suspended the gas excise tax. Gas prices hit $4.99 here in Indy. Republicans, both state and federal, are responsible for this mess. Hoosiers shouldn’t suffer financially from their decisions. Now, people will get some actual savings at the pump instead of a handful of change. We’ll cover our losses with our $5 billion surplus. Indiana doesn’t need any more tax revenue; what this state needs is for people to keep more of their paychecks,” said Porter.

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