One day before Indiana’s gas tax holiday was set to expire, Governor Mike Braun again extended it. He declared a new energy emergency that allows him to keep Hoosiers from paying full price at the pump.
Braun first instituted the gas tax holiday in April, waiving the state’s gas tax. In May, he added the state’s excise tax to the mix, shaving roughly sixty cents off of the price per gallon.
Thursday was supposed to be the final day of the gas tax holiday, with Braun signposting that he could not extend the holiday beyond that without approval from the legislature.
But on Wednesday afternoon, Braun told reporters he would extend the gas tax holiday yet again.
The previous energy emergency had been created due to the war with Iran and allowed the governor to suspend the taxes. four months. This time, the governor cited a new energy emergency, pointing to disruptions to global oil because of the ongoing conflict in Ukraine and wildfires in Canada.
“This new energy emergency is prompted by energy disruptions to global oil shipping lanes in recent weeks,” Braun said. “These disruptions have created new pressures on fuel prices that are driving the price of gas for Hoosiers outside the norm of standard economic conditions.”
The new energy emergency starts a fresh clock for the governor, offering a second 120-day window for him to pause gas and excise taxes.
In a statement, Attorney General Todd Rokita signed off on the new energy emergency.
“Nothing in Indiana’s emergency powers statutes prohibits the Governor from declaring separate emergencies based upon different factors,” Rokita wrote. “It is within the Governor’s authority to give Hoosiers temporary and much-needed relief at the pump based upon changed conditions.”
The suspension of Indiana’s gas taxes has not been without concern. Lawmakers have worried about how much is being spent and how local governments may be impacted as the tax funds local infrastructure projects.
Braun announced that local governments would be reimbursed for their share of the suspension. The first portion of those funds was already approved by the Indiana Board of Finance last month.
The move still means the state has spent roughly half a billion dollars to lower costs at the pump so far - spending roughly $140 million each month that taxes are suspended.
Braun said the cost is worth it to help ease the burdens being put on Indiana residents.
“It’s the place that reaches the average Hoosier weekly,” he said. “This is hitting people that deal with it as a must-have in their budget. To me it’s the best way to help people that need it the most.”
The governor said the state’s strong budget, bringing in about $2-billion annual surplus, made the relief possible and wouldn’t impact other potential budget items, such as childcare.
Lawmakers released statements following the announcement, many in support of the continued relief.
"We understand the financial hardship gas prices have on Hoosier families and agree we need to do what we can to keep the costs as reasonable as possible,” Sen. Ryan Mishler (R-Mishawaka) said in a release.
House Speaker Todd Huston (R-Fishers) also noted his support.
“As we prepare for the next state budget, our intent is to work with the Governor and our colleagues in the Senate to identify existing resources and continue making the infrastructure investments that support Hoosiers, businesses and our growing economy,” he said.
Democrat Rep. Gregory Porter said he respected Braun’s decision but felt the governor was ignoring the primary cause of spiking gas prices: President Trump’s ongoing war in Iran.
“Every day this war continues and we keep our gas tax suspended to protect Hoosiers, that's money we are losing for our roads, our schools our healthcare and more. Indiana can't be on the hook for Washington, D.C.'s reckless actions forever,” Porter said.
Speaking with reporters Wednesday, Braun said the calls from Democrats were a deflection.
“We ought to count our blessings that as a state we’re one of a few that can look at lighter taxation,” he said.
The new gas tax holiday is set to expire on September 5th.
Contact Government Reporter Benjamin Thorp at bthorp@wfyi.org
