Indiana governor ‘likely’ to extend gas tax break

Gov. Mike Braun told an Indianapolis radio station Thursday that he is “likely” to extend the suspension of the state sales tax on gas purchases.

“I’m likely to extend it for another 30 days, even though it has been drifting down, because I don’t see the Mideast issue being cleared up in the next 30 to 45 days,” he told conservative host Tony Katz on WIBC. “I think we keep watching there, but if it looks to me like what it’s going to do, there’s a good chance I’ll be extending it.”

Braun on April 8 signed an energy emergency declaration waiving the 7% sales tax on gas. By law, he can’t renew the emergency more than once without approval of the General Assembly.

“I think the legislature has to intervene at some point beyond that,” Braun said. “I doubt there’d be a special session to do it.”

The law allows for 60-day suspensions but he chose 30 days.

The April sales tax rate is 17.2 cents a gallon but it is set to rise to 23.3 cents in May. The estimated cost to state coffers — and savings for motorists — for the first 30-day suspension is $50 million.

On the day he suspended the tax, the average cost for a gallon of gas in Indiana was $4.14, according to AAA. Now that has fallen to $3.69.