Indiana fuel tax goes up August 1st

July 21, 20220

Indiana is expecting a fuel tax hike starting 1st August.

The Indiana Department of Revenue announced that a state tax of 62,4 cents per gallon will be charged in August. This is despite the fact that the cost of gasoline decreased by 11% compared to June – from $5,15 to $4,58 per gallon.

Indiana has two taxes on gasoline, a 7% sales tax and a tax on infrastructure projects.

Sales tax is calculated monthly and has almost tripled since the start of 2021. The road project tax rose 1 cent per gallon in July to 33 cents, in line with automatic inflation increases allowed under the Republican-led 2017 plan.

Since March, Republican Gov. Eric Holcomb and GOP leaders since March have rejected all calls by Democrats to temporarily suspend state fuel taxes to help the state’s residents amid high inflation.

Instead, Holcomb asked lawmakers to approve a $225 state budget payment to all taxpayers during a special legislative session starting next week.


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