Gov. Eric Holcomb said he agrees with legislative leaders who are reluctant to pause the state’s gas tax. But he said he’s planning on working with the General Assembly on inflation relief for Hoosiers.
Republican legislative leaders have been consistently against using the state’s budget surplus on temporarily halting Indiana’s gas tax. For every gallon Hoosiers spend at the pump, 32 cents goes back to the state.
Democrats have been calling since March for a temporary gas tax suspension.
Supporters of a gas tax cut argue the state can afford such a move as its state tax collections have surged about 12% from a year ago, potentially pushing state cash reserves from last year’s record level to $3.9 billion to about $6 billion by the end of June.
Holcomb said he expected to release a plan in early June for what he called “inflationary relief” but provided no details.
“I want to make sure that relief gets exactly to Hoosiers who are feeling the sting of this national inflation,” Holcomb said.
Republican Senate President Pro Tem Rodric Bray said even if the state gas tax was suspended, there is no guarantee that pump prices would be cut by the full amount.
Holcomb said he wants to see the state’s revenue report for May, and then send a plan to the General Assembly.
The governor said that could mean a special session for lawmakers to pass that relief.
Contact Lauren at lchapman@wfyi.org or follow her on Twitter at @laurenechapman_.
The Associated Press contributed to this story.
