Braun EO Extend Indiana Gas Tax Relief Through Early December

Indiana motorists and farmers will get another month of relief from certain state fuel taxes after Gov. Mike Braun signed two executive orders Wednesday extending the suspensions through Dec. 4.

Why did he wait until have the election? Republicans suffered losses statewide and he does this the next day. He needs to fire Loretta Rush and start shaking up the corruption in the legal system. Rokita would love to help and he may want to ask Curtis Hill to help too.

The orders keep both Indiana’s gasoline excise tax and its 7% usage tax on hold. Together, the suspended taxes represented approximately 64 cents per gallon in November. The governor also continued a temporary exemption allowing farmers and timber operators to use untaxed diesel fuel for certain off-road activities.

Braun said the extension is intended to ease costs for households and the agricultural community.

“Affordability is my top priority,” the governor said in a statement, adding that the administration wants to maintain savings at the pump while preserving funding for roads and infrastructure.

AAA reported Wednesday that Indiana’s average price for regular gasoline was $3.75 per gallon, approximately 37 cents below the national average.

A tax suspension that has lasted months

Braun began the effort in April, invoking a state energy-emergency statute to suspend Indiana’s 7% gasoline usage tax. In May, he expanded the action to include the state’s 37-cent-per-gallon gasoline excise tax.

Both suspensions have remained in effect through a series of emergency extensions.

In September, Braun issued a separate emergency declaration allowing certain agricultural and timber operations to purchase diesel without the taxes ordinarily applied to on-road fuel. The exemption covers qualifying off-road equipment, including farm machinery such as combines. That order is also scheduled to end Dec. 4.

Wednesday’s action is expected to be the final extension. Continuing the relief beyond that date would require another emergency declaration. Braun has previously indicated he is unlikely to take that step, given that the Indiana General Assembly is scheduled to begin its next session in early January.

The price of tax relief

The savings at the pump come with a substantial cost to state revenue. The Indiana Department of Transportation estimated in August that suspending the two gasoline taxes through early December could leave the state approximately $1.1 billion short of expected revenue.

That raises a significant question for lawmakers: how will Indiana maintain and improve its roads and bridges while replacing the money normally collected from motorists?

Braun told reporters in September that the separate diesel exemption was expected to reduce state revenue by another $1 million to $3 million.

For now, drivers and eligible agricultural businesses will continue to receive the benefit. But when the emergency orders expire, Indiana will face the decision of whether to restore the taxes, find replacement revenue or pursue a different approach to transportation funding.