Indiana gas tax to remain steady in June as prices surge at the pump

INDIANAPOLIS – You received’t see a lot of a distinction in Indiana’s gasoline tax subsequent month.

Based on the Indiana Division of Income, the gasoline use tax calculation for June comes out to 24 cents a gallon. That’s just about the identical as Could’s charge, which was 24.1 cents.

Indiana’s gasoline use tax has steadily elevated since February 2021, solely displaying month-to-month decreases throughout three months (October 2021, January 2022 and February 2022), based on a discover from the Division of Income.

The gasoline use tax is set by a formulation that takes the statewide common retail worth for a gallon of gasoline (minus relevant taxes), multiplies it by 7% after which rounds it to the closest one-tenth of a p.c.

Which means the gasoline use tax fluctuates primarily based on gasoline costs. With the retail worth of gasoline averaging $3.4301 from April 16, 2022, by way of Could 15, 2022, that calculation got here out to 24 cents.

Indiana drivers additionally pay a further state tax of about 32 cents a gallon once they gas up, with the cash going towards infrastructure tasks. When factoring in each, drivers can count on to pay a complete of 56 cents per gallon in state taxes.

There may be additionally a federal gasoline tax of about 18 cents, though the state doesn’t have any management over that.

Indiana Democrats are pushing for Indiana to droop the gasoline tax to offer drivers some aid. Former Gov. Frank O’Bannon did that in 2000, however Gov. Eric Holcomb stated adjustments in state legislation forestall him from doing so proper now.

“For an Indiana governor to droop the gasoline tax by way of a declaration of an power emergency, the state should have an current or projected power shortfall that might jeopardize life, well being and property,” Holcomb stated in a press release. “We now have not met that threshold.”

Drivers will see a rise within the gasoline tax in July—and it may very well be a double whammy. The state is already elevating the infrastructure tax by 1 cent and Indiana will probably see the next gasoline use tax primarily based on all-time excessive gas costs.

Based on AAA, the present common worth for a gallon of normal is $4.610 in Indiana. Per week in the past, costs had been $4.413. Going again a month, the common was $3.927.

Thursday’s common worth of $4.616 marked the best recorded common worth ever, based on AAA.