Overview
- Governor Mike Braun announced Thursday that he is suspending both Indiana’s gasoline use tax and gasoline excise tax for 30 days, taking the holiday through Oct. 6 and cutting pump prices by about $0.60 per gallon.
- The move is the sixth consecutive monthly extension of a policy that began with a usage-tax pause in April and expanded to include the excise tax in May.
- Braun said his recommended state budget will draw on reserve balances to reimburse local governments and keep state and local infrastructure projects funded while the tax suspension continues.
- The administration attributes the need for relief to disruptions in global oil flows and points to AAA data showing Indiana has had some of the nation’s lowest retail gasoline prices since April.
- Officials will reassess gas prices and the fiscal plan on Oct. 6, and continued reliance on reserves could reduce the state’s cushion for future costs and shift revenue pressures onto budget balances if the suspension is prolonged.