Indiana’s record-breaking gasoline taxes heading even higher in August | National News
Hoosier motorists will continue feeling some extra pain at the pump even if gasoline prices keep incrementally falling as they have for more than 30 days in a row.
Blame Indiana’s record high fuel taxes.
The Department of Revenue announced Monday that the applied 7% sales tax on all Indiana gasoline purchases in August will be 29.4 cents per gallon — the highest in state history.
The increase, from a record 29.1 cents per gallon in July, is based on the statewide average pre-tax price for gasoline ($4.1934 per gallon) during the June 16-July 15 tracking period.
Indiana is one of just 16 states, including Illinois and Michigan, where gasoline purchases are subject to sales tax. The majority of the country opts not to double-tax gasoline purchases by collecting both a gasoline tax and its sales tax on gasoline.
The gasoline tax in Indiana now stands at 33 cents per gallon, up from 32 cents per gallon in June and 18 cents per gallon in 2017, in accordance with a state law enacted by the Republican-controlled General Assembly and Republican Gov. Eric Holcomb to generate more revenue for road construction projects.
As a result, the gas prices Hoosiers pay in August will consist of 80.8 cents per gallon in taxes, including the state sales tax on gasoline, the state gasoline tax and the 18.4 cents per gallon federal gas tax.
Records show wholesale gasoline prices have fallen from a peak of $4.31 per gallon June 8 to approximately $3.25 per gallon Monday.
But the wholesale price likely will need to drop another 8-10% to under $3 per gallon to bring prices at most Northwest Indiana gas stations below $4 per gallon after adding in taxes and profit.
However, even if the wholesale price drops further to $2.50 per gallon, the price at the pump in Indiana still will be boosted by a minimum of 80.8 cents per gallon for taxes — at least until the applied sales tax rate is adjusted again for September.
Statehouse Democrats are hoping to change this during the special legislative session that begins July 25.
They plan to propose temporarily suspending Indiana’s 62.4 cents per gallon in gasoline taxes for several months, and replacing the lost revenue with excess budget reserves, to immediately bring down the price Hoosiers pay at the pump.
Republicans have a different idea. They want to send checks worth $225 to eligible Hoosier taxpayers to help defray the impact of inflation on all consumer goods, not just gasoline.
State Sen. Rodney Pol, D-Chesterton, said that while he agrees a state check will aid many Hoosiers, suspending the state’s record-high gasoline taxes will more quickly help Indiana motorists and businesses save money every time they fill up their vehicles.
“Many small businesses, trucking companies and nonprofits like Meals on Wheels won’t directly benefit from these rebate checks and are getting hit hard by skyrocketing gas prices,” Pol said.
“Additionally, I share the concerns of many Hoosier economists about the increase in inflation that is projected following the direct rebates. We must stop being so reactionary to these economic issues and instead proactively invest in our future,” he added.
Across the state line, Illinois’ gasoline tax currently is 39.2 cents per gallon and the state sales tax on gasoline is 55.9 cents per gallon for the July 1-Dec. 31, 2022, period.
Cook County, Illinois, then adds its own 6 cents per gallon gasoline tax and an additional 1.75% sales tax. Gasoline purchased in Chicago includes all the state and Cook County taxes, plus a city gasoline tax of 8 cents per gallon and the city’s 1.25 % sales tax.
Meet the 2022 Northwest Indiana legislative delegation
State Sen. Michael Griffin, D-Highland
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10 hrs ago
State Sen. Michael Griffin, D-Highland
1st Senate District
Represents: Hammond (south side), Munster, Highland, Griffith, Dyer, Schererville
Experience: Former Highland clerk-treasurer; university instructor
Committees: Insurance and Financial Institutions; local govt
State Sen. Lonnie Randolph, D-East Chicago
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10 hrs ago
State Sen. Lonnie Randolph, D-East Chicago
2nd Senate District
Represents: Hammond, Whiting, East Chicago, Gary (west side), Griffith, Hobart, Merrillville
Experience: State senator since 2008, previously served 1994-98; attorney
Committees: Commerce and Technology; Insurance and Financial Institutions (ranking member); Judiciary (ranking member); Rules and Legislative Procedures; Tax and Fiscal Policy; Utilities (ranking member)
State Sen. Eddie Melton, D-Gary
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10 hrs ago
State Sen. Eddie Melton, D-Gary
3rd Senate District
Represents: Gary, Lake Station, New Chicago, Hobart, Merrillville, Crown Point
Experience: State senator since 2016; community relations manager
Committees: Appropriations (ranking member); education and career development; health and provider services; Joint Rules; Rules and Legislative Procedures
State Sen. Rodney Pol Jr., D-Chesterton
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10 hrs ago
State Sen. Rodney Pol Jr., D-Chesterton
4th Senate District
Represents: Ogden Dunes, Portage, Chesterton, South Haven, Burns Harbor, Beverly Shores, Michigan City, Westville
Experience: State senator since 2021; attorney
Committees: Corrections and Criminal Law (ranking member); environmental affairs; local government; Pensions and Labor; Public Policy
State Sen. Ed Charbonneau, R-Valparaiso
updated
10 hrs ago
State Sen. Ed Charbonneau, R-Valparaiso
5th Senate District
Represents: Valparaiso, Hebron, Kouts, Jasper County
Experience: State senator since 2007; attorney
Committees: Appropriations; ethics; Health and Provider Services (chairman); Rules and Legislative Procedures; Tax and Fiscal Policy
State Sen. Rick Niemeyer, R-Lowell
updated
10 hrs ago
State Sen. Rick Niemeyer, R-Lowell
6th Senate District
Represents: St. John, Cedar Lake, Crown Point, Winfield, Lowell, Newton County
Experience: State senator since 2014, state representative 2012-14; small business owner
Committees: Environmental Affairs; local government; Tax and Fiscal Policy
State Sen. Mike Bohacek, R-Michiana Shores
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10 hrs ago
State Sen. Mike Bohacek, R-Michiana Shores
8th Senate District
Represents: LaPorte County
Experience: State senator since 2016; consultant
Committees: Corrections and Criminal Law; Insurance and Financial Institutions; judiciary; local govt
State Rep. Carolyn Jackson, D-Hammond
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10 hrs ago
State Rep. Carolyn Jackson, D-Hammond
1st House District
Represents: Hammond, Whiting
Experience: State representative since 2018; retired Cook County, Ill., probation officer
Committees: Environmental Affairs; Family, Children and Human Affairs; Natural Resources
State Rep. Earl Harris Jr., D-East Chicago
updated
10 hrs ago
State Rep. Earl Harris Jr., D-East Chicago
2nd House District
Represents: East Chicago, Gary (west side)
Experience: State representative since 2016; small business owner
Committees: Government and Regulatory Reform; roads and transportation; Ways and Means
State Rep. Ragen Hatcher, D-Gary
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10 hrs ago
State Rep. Ragen Hatcher, D-Gary
3rd House District
Represents: Gary (downtown and east side), Lake Station, New Chicago, Hobart
Experience: State representative since 2018; attorney
Committees: Commerce, Small Business and Economic Development; Courts and Criminal Code (ranking member); Government and Regulatory Reform
State Rep. Ed Soliday, R-Valparaiso
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10 hrs ago
State Rep. Ed Soliday, R-Valparaiso
4th House District
Represents: Valparaíso
Experience: State representative since 2006; aviation safety consultant
Committees: Elections and Appropriations; roads and transportation; Utilities, Energy and Telecommunications (Chairman)
State Rep. Pat Boy, D-Michigan City
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10 hrs ago
State Rep. Pat Boy, D-Michigan City
9th House District
Represents: Michigan City, Chesterton, Beverly Shores, Long Beach, Westville
Experience: State representative since 2018; retired small business owner
Committees: Environmental Affairs; Natural Resources (ranking member)
State Rep. Chuck Moseley, D-Portage
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10 hrs ago
State Rep. Chuck Moseley, D-Portage
10th House District
Represents: Portage, Chesterton, Ogden Dunes, Burns Harbor, South Haven
Experience: State representative since 2008; financial solutions associate
Committees: Employment, Labor and Pensions; Roads and Transportation (ranking member); Veterans Affairs and Public Safety
State Rep. Mike Aylesworth, R-Hebron
updated
10 hrs ago
State Rep. Mike Aylesworth, R-Hebron
11th House District
Represents: St. John, Cedar Lake, Lowell, Schneider, Hebron, Kouts
Experience: State representative since 2014; farmer, former state environmental regulator
Committees: Agriculture and Rural Development (vice chairman); Courts and Criminal Code; Environmental Affairs
State Rep. Mike Andrade, D-Munster
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10 hrs ago
State Rep. Mike Andrade, D-Munster
12th House District
Represents: Munster, Hammond (south side), Highland, Griffith
Experience: State representative since 2020; small businessman
Committees: Commerce, Small Business and Economic Development; Employment, Labor and Pensions; Veterans Affairs and Public Safety
State Rep. Vernon Smith, D-Gary
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10 hrs ago
State Rep. Vernon Smith, D-Gary
14th House District
Represents: Gary (south side), Merrillville
Experience: State representative since 1990; education professor at Indiana University Northwest
Committees: Education (ranking member); judiciary; local govt
State Rep. Hal Slager, R-Schererville
updated
10 hrs ago
State Rep. Hal Slager, R-Schererville
15th House District
Represents: Dyer, Schererville, St. John, Griffith
Experience: State representative 2012-18, reelected 2020; small business owner
Committees: Environmental Affairs; Ways and Means
State Rep. Douglas Gutwein, R-Francesville
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10 hrs ago
State Rep. Douglas Gutwein, R-Francesville
16th House District
Represents: Newton, Jasper counties
Experience: State representative since 2008; small business owner
Committees: Agriculture and Rural Development; Environmental Affairs (vice chairman); Veterans Affairs and Public Safety
State Rep. Julie Olthoff, R-Crown Point
updated
10 hrs ago
State Rep. Julie Olthoff, R-Crown Point
19th House District
Represents: Crown Point, Merrillville, Winfield, Lakes of the Four Seasons, Hobart
Experience: State representative 2014-2018, reelected 2020; small business owner
Committees: Family, Children and Human Affairs; Public Health (vice chairwoman); Veterans Affairs and Public Safety
State Rep. Jim Pressel, R-Rolling Prairie
updated
10 hrs ago
State Rep. Jim Pressel, R-Rolling Prairie
20th House District
Represents: LaPorte County
Experience: State representative since 2016; small business owner
Committees: Commerce, Small Business and Economic Development; Roads and Transportation (chairman)
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