Three Northwest Indiana state representatives, from left, Mike Andrade, D-Munster; Earl Harris Jr., D-East Chicago; and Carolyn Jackson, D-Hammond; are urging Republican Gov. Eric Holcomb to temporarily pause the collection of state fuel taxes and immediately reduce the price at the pump by 56.1 cents per gallon.
Three Northwest Indiana lawmakers are calling for Gov. Eric Holcomb to suspend the state's fuel taxes until at least July to give Hoosiers a break when they fill up their tanks.
State Reps. Mike Andrade, D-Munster; Earl Harris Jr., D-East Chicago; and Carolyn Jackson, D-Hammond, this week urged the Republican chief executive to help Indiana motorists by temporarily pausing the collection of state fuel taxes, and immediately reduce the price at the pump by 56.1 cents per gallon.
"It’s unacceptable for our state to continue profiting when Hoosiers are hurting right now," Andrade said. "Every time Hoosiers pay at the pump, our state reaps revenue dollars. My Republican colleagues have celebrated Indiana’s historic $5 billion surplus — so why not put it to work for everyday Hoosiers?"
"Either Gov. Holcomb must suspend the gas tax temporarily or the General Assembly should take action to do so on Technical Corrections Day in a few weeks."
According to the Department of Revenue, Indiana motorists currently are paying the highest fuel taxes in state history, including a 32 cents per gallon state gasoline tax, a 24.1 cents per gallon state sales tax on gasoline and an 18.4 cents per gallon federal gas tax.
The soaring wholesale price of gasoline during the April 16-May 15 period is likely to bump the state's 7% sales tax on gasoline well above 25 cents per gallon when the effective rate is adjusted for June.
The gasoline tax also is due to increase to 33 cents per gallon on July 1, in accordance with a 2017 law enacted by the Republican-controlled General Assembly and Holcomb that boosted vehicle registration fees, hiked the gasoline tax by 10 cents per gallon, and authorized annual 1 cent inflation adjustments through 2024 to fund a massive road construction program.
"Hoosiers deserve the ability to save money and put food on the table for their families," Jackson said. "Suspending the gas tax would give Hammond residents a bit of a break at the pump and is needed now more than ever. We have $5 billion in reserves — let's act to put Hoosiers' money back in their pockets."
Harris, a member of the budget-writing House Ways and Means Committee, said the revenue lost by temporarily suspending Indiana fuel taxes can be more than made up by reallocating a fraction of the state's record-breaking budget reserve to road funding.
"It's important to me that we act in the best interest of Hoosier families while doing so responsibly," Harris said.
The lawmakers noted Democratic Gov. Frank O'Bannon temporarily suspended the state's then-5% sales tax on gasoline during the summer of 2002 when gas prices topped the unprecedented price of $2 per gallon.
Speaking Monday in Northwest Indiana, Holcomb said a change to Indiana's energy emergency statute, enacted in 2003, limits his ability to follow O'Bannon's example — absent an actual shortage of fuel supplies and a corresponding threat to life, health or property.
"I don't want to sound callous here, or detached from reality, because I know what fuel prices are on any given day. But it's across the board, and there's a lot of different factors for the inflation that we're enduring," Holcomb said.
The governor said his goal is to maintain Indiana’s overall low-tax, low cost of living environment, and he pointed to the July 1 elimination of the utility receipt tax and the Jan. 1, 2023, reduction in the personal income tax rate to 3.15% from 3.23% as examples of his recent work along those lines.
"I'm very careful about not just cherry-picking but (looking at) what can we do holistically to make it a little bit more easy on the weekly or monthly checkbook," Holcomb said.
"It's those fundamentals in the state of Indiana that I hope will allow us to, not just weather, but when we get on the other side, we're in an even stronger position than where we were when we entered the storm."
Meet the 2022 Northwest Indiana legislative delegation
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 gas…
Three Northwest Indiana state representatives, from left, Mike Andrade, D-Munster; Earl Harris Jr., D-East Chicago; and Carolyn Jackson, D-Hammond; are urging Republican Gov. Eric Holcomb to temporarily pause the collection of state fuel taxes and immediately reduce the price at the pump by 56.1 cents per gallon.