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Hoosiers will pay a total of 73.4 cents in taxes, including 55 cents in state taxes, for every gallon of gasoline they purchase in October.
The declining wholesale price of gasoline in Indiana and across the country means Hoosiers will pay slightly less in state taxes on their gasoline purchases during the month of October.
The Indiana Department of Revenue announced Monday that the applied 7% sales tax on gasoline purchases will be 22 cents per gallon next month, down from 24 cents per gallon in September.
The second consecutive monthly decrease, from a record 29.4 cents per gallon in August, is based on the statewide average pre-tax price for gasoline falling to $3.1418 per gallon during the Aug. 16-Sept. 15 tracking period.
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At the same time, the declining price of fuel has no impact on Indiana’s 33 cents per gallon gasoline tax, which state lawmakers last month opted not to reduce to its pre-July 1 rate of 32 cents per gallon, or the 18.4 cents per gallon federal gasoline tax that’s not changed since 1993.
As a result, Hoosiers will pay a total of 73.4 cents in taxes, including 55 cents in state taxes, for every gallon of gasoline they purchase in October.
The Republican-controlled General Assembly did agree Aug. 5 in Senate Enrolled Act 2 to cap the applied sales tax rate on gasoline at 29.5 cents per gallon, a level it never has reached and likely never will unless gas prices soar to new record highs.
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.
Statehouse Democrats attempted several times during this summer’s special legislative session to temporarily suspend the collection of Indiana’s gasoline taxes and make up the lost revenue earmarked for road construction projects by using a portion of the $6.1 billion in the state’s reserve accounts.
That policy, if enacted, would have reduced the price at the pump by 55 cents per gallon Oct. 1.
However, Republican leaders, including Gov. Eric Holcomb, instead decided to use $1 billion from the state’s budget reserves to pay eligible Hoosiers a $200 taxpayer rebate to cope with the inflation affecting all their purchases, not just gasoline.
Riding Shotgun/DNR Conservation Officer Tyler Brock
They said it didn’t make sense only to focus on gasoline taxes since approximately one-fifth of the gasoline sold in Indiana is purchased by non-Indiana residents — and there’s no reason to give them a tax break.
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.
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 Government
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 Procedure; Tax and Fiscal Policy; Utilities (ranking member)
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 Procedure
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
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 Procedure; Tax and Fiscal Policy
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
8th Senate District
Represents: LaPorte County
Experience: State senator since 2016; consultant
Committees: Corrections and Criminal Law; Insurance and Financial Institutions; Judiciary; Local Government
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
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
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
4th House District
Represents: Valparaiso
Experience: State representative since 2006; aviation safety consultant
Committees: Elections and Apportionment; Roads and Transportation; Utilities, Energy and Telecommunications (chairman)
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
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
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
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
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 Government
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
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
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
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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Hoosiers will pay 75.4 cents in taxes, including 57 cents in state taxes, for every gallon of gasoline they purchase in September.
The State Budget Agency announced Friday Indiana took in $1.48 billion from all general fund revenue sources for July.
Hoosier taxpayers can count on receiving a $200 tax rebate payment from the state sometime in the weeks and months ahead.
The American Action Network currently is spending $450,000 to air cable TV and digital ads blaming U.S. Rep. Frank J. Mrvan, D-Highland, for high gas prices.
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.
At the request of the governor, the General Assembly will meet July 25 to consider returning $1 billion of the surplus to taxpayers in the form of $225 payments to each eligible adult in the state.
“Hoosiers need sustained relief, and suspending Indiana’s record-high gas tax immediately would accomplish that,” said state Rep. Mike Andrade, D-Munster.
Hoosiers will pay a total of 73.4 cents in taxes, including 55 cents in state taxes, for every gallon of gasoline they purchase in October.
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