INDIANAPOLIS, Ind. (WANE) As gas prices continue to set records, the tax paid on each gallon sold to consumers in Indiana is at record levels as well.
Currently in Indiana, motorists pay about 74 cents a gallon in taxes. There’s an 18 cent federal tax, a 35 cent Indiana tax used to fund infrastructure projects and a seven percent sales tax calculated monthly which currently stands at 24.1 cents per gallon.
On Thursday the Indiana Department of Revenue announced the sales tax rate for June will be 24 cents a gallon. To put that in perspective, the sales tax for June 2020 was only 7.6 cents a gallon. The tax for May was 24.1 cents per gallon.
The Indiana Department of Revenue (DOR) calculates the gas tax as follows:
1) The statewide average retail price per gallon of gasoline (excluding the Indiana gasoline tax,
the federal gasoline tax, the Indiana gasoline use tax, and the Indiana gross retail tax (if
any)); multiplied by
2) seven percent (7%); rounded to
3) The nearest one-tenth of one cent ($0.001)
The DOR determined the statewide average retail price for gas from April 16, 2022, to May 15, 2022 was $3.4301.
According to the Associated Press, Democrats have pushed over the past week for Republican Gov. Eric Holcomb to suspend the gas tax, although Holcomb says he doesn’t have authority to do so. Democrats say he could also call the Legislature into a special session. Democratic Rep. Tonya Pfaff of Terre Haute said “where there’s a will, there’s a way.”