Indiana’s sales tax charged on gasoline will barely change next month despite the recent sharp increase in gas prices.
A calculation released Thursday by the Indiana Department of Revenue sets the state sales tax charged on gas at 24 cents a gallon for June. The rate charged during May is 24.1 cents a gallon.
The steady sales tax rate means the state’s total gas tax will remain about 56 cents per gallon.
Many Indiana Democrats say that since state government has nearly $6 billion in cash reserves, Republican Gov. Eric Holcomb should issue an emergency order suspending the gas tax or call a special legislative session so the GOP-dominated Legislature could take such action.
Holcomb says he doesn’t have authority to suspend the taxes.
Indiana has two taxes on gasoline — the 7% state sales tax and a tax directed to infrastructure projects. The road projects tax that’s currently 32 cents a gallon is set to go up by 1 cent in July.
The sales tax charged at the pump is calculated monthly and the state revenue department determines it based on the statewide average retail price over a monthlong period.
Indiana’s average pump price hit $4.62 for a gallon of regular as of Thursday, up from $3.93 a month ago, according to AAA.