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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

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

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

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

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10 hrs ago

State Sen. Ed Charbonneau, R-Valparaiso

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

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10 hrs ago

State Sen. Rick Niemeyer, R-Lowell

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

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

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

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10 hrs ago

State Rep. Earl Harris Jr., D-East Chicago

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

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

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

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

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

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10 hrs ago

State Rep. Mike Aylesworth, R-Hebron

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

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

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

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10 hrs ago

State Rep. Hal Slager, R-Schererville

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

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

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10 hrs ago

State Rep. Julie Olthoff, R-Crown Point

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

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10 hrs ago

State Rep. Jim Pressel, R-Rolling Prairie

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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