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Governor extends Indiana gas tax holiday 30 days, suspends 36-cent excise tax
Summary
The governor announced a 30-day extension of Indiana's gas tax holiday, adding a suspension of the 36-cent-per-gallon gasoline excise tax and the gasoline use tax; he said the move will average about 12.4% savings per fill-up and noted further extensions would require the legislature.
The governor announced today that he is extending Indiana’s gas tax holiday for 30 days and expanding it to suspend both the gasoline use tax and the 36-cent-per-gallon gasoline excise tax. "Today, I'm extending the gas holiday for another 30 days," the governor said, adding the extension runs through the end of his emergency declaration and is the longest suspension he can impose without legislative action.
The governor said suspending both parts of the state gas tax more than doubles savings at the pump and estimated the average motorist would see about a 12.4% reduction in every fill-up. He attributed some recent price volatility to the introduction of summer-blend fuel and supply-chain actions by wholesalers and retailers but said markets appear to be stabilizing and the extension guarantees local savings in the near term.
The administration also said it is reviewing mileage reimbursement for state employees who use personal vehicles for work and will announce any rate changes soon. The governor framed the move as part of a broader affordability agenda that includes addressing health-care costs and utility rates; he said the Indiana Utility Regulatory Commission (IURC) has been reconstituted to be more "ratepayer conscious."
On the fiscal side, the governor said higher revenues collected earlier and INDOT reserves will partly offset the revenue loss from the temporary tax suspension but warned that long-term road funding will require legislative solutions. "The last road funding bill we did as a state was back in 2017," he said, and until lawmakers adopt a new long-term plan, "larger projects across the state... will have to be probably stretched out" and may require cost sharing by beneficiaries.
The governor emphasized that any extension beyond the 30 days and the end of his emergency declaration would require involvement of the General Assembly. He said he had not discussed a special session and that further action beyond his emergency authority would need legislative approval.
The extension takes effect immediately and will remain in place through the duration of the governor's current emergency declaration; the administration did not provide a calendar date for the declaration's end.
