Indiana gas tax suspension continues through Oct. 6

Gov. Mike Braun suspended Indiana’s gasoline usage and excise taxes Thursday, extending his latest energy emergency just in time to avoid a sudden surge in gasoline prices for Labor Day weekend.

Motorists would have paid an extra 61 cents per gallon in excise and usage taxes this month had Braun not renewed the emergency order before it expired Sept. 5.

Instead, Hoosiers will see the cheapest gasoline prices in the nation as they travel for Labor Day weekend. The average cost for a gallon of regular unleaded gasoline was $3.45 in Indiana Thursday — far below the national $4.14 per gallon average, according to AAA.

“Affordability has been a top priority,” Braun said. “My gas tax suspensions have delivered the least expensive gas in America for Hoosier families.”

Braun announces new energy emergency, continues Indiana’s gas tax suspension

Hoosiers have not paid Indiana’s gasoline use tax — a 7% sales tax calculated each month — since Braun declared an energy emergency at the start of the Iran War in April.

Braun suspended the state’s 37-cent excise tax when he renewed the emergency order the following month. Both taxes have been suspended since May.

Braun issued a new energy emergency in August, referencing the 2022 Russian invasion of Ukraine and Canadian wildfires this time to continue the suspension beyond the 120 days permitted by law for the governor to act without legislative approval.

Lawmakers return for their budget-writing session in January, but have shown little interest in calling a special legislative session to authorize a gasoline tax suspension.

Thursday’s renewal means the excise and usage taxes will remain suspended through at least Oct. 6, though the governor can  keep the emergency in effect through early December.

“That gets us close enough to a legislative session where we can look at it more seriously,” Braun told reporters Thursday.

The Indiana Department of Transportation projects losses from the excise and usage tax suspensions will reach a combined $1.1 billion for state and local road projects if the suspension continues through Dec. 4.

Braun ordered his administration to cover losses to locals through the State Highway Fund. But he will need legislative approval to tap into the state’s growing cash reserves, which are projected to reach $5.2 billion by next summer.