No decisions have been made about legislative action to extend state tax relief from soaring gas prices once Indiana Gov. Mike Braun’s energy emergency declaration ends June 7.
The decree allowed for a suspension of gas sales tax and excise tax collections — saving Hoosier drivers nearly 60 cents a gallon in May.
Braun first declared the 30-day statewide emergency on April 8, enacting a suspension of the 7% sales tax on gasoline. That was worth about 17 cents per gallon in April and roughly 23 cents per gallon during May.
He extended the emergency declaration last week — along with the sales tax break — and suspended the gas excise tax on top of that. The excise tax amounts to 36 cents per gallon.
State law, however, bars the governor from renewing or extending a proclamation more than once without General Assembly approval.
Top Republican lawmakers say there’s been talk of legislative action, but no decisions made.
Asked on Tuesday whether he’d support the Legislature holding a special session to extend the gas tax pause, Senate President Pro Tem Rodric Bray said, “We … haven’t had that conversation with the governor yet, but certainly would.”
“My hope is that we get some of these things going on around the globe smoothed out a little bit, and those gas prices get start to lower on their own,” Bray told reporters. “That would be the best circumstance. But, we’ll certainly have that conversation.”
House Ways and Means Committee Chair Jeff Thompson, R-Lizton, said, “There’ve been some discussions, but nothing … major.”
Thompson leads the House Republican supermajority’s budget-writing and other fiscal work.
The sales and excise tax breaks combined are expected to cost state coffers $104 million and local units $52 million over the 30-day period. The initial sales tax pause had a $50 million hit.
The average price of a gallon of regular gas in Indiana is about $4.32, according to AAA, as of Tuesday. That’s down from last week’s average of $4.78.
The state’s average was $2.68 in late February, before President Donald Trump launched the war with Iran that prompted a worldwide spike in oil prices.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
