Indiana residents are getting a little relief from gasoline prices that have jumped by over a dollar-a-gallon in recent weeks.
"I'm taking action to provide relief on high gas prices," said Governor Mike Braun, making the announcement of a 30-day suspension of the gasoline sales tax from his office in Indianapolis.
"I'm declaring a tax holiday," he said.
Braun said a portion of the gas tax, that currently amounts to about 17-cents-a-gallon, is being suspended for 30-days.
After that he'll see where things stand.
"If necessary I'll look at extending it for another 30-days, no guarantee on that."
Braun warned retailers that consumers need to see the savings.
"I'm calling on gasoline retailers to ensure these savings are showing up at the pumps.The state will be watching the pumps to make sure savings are delivered to Hoosiers when they go to fill-up, and I call on the Attorney General to enforce protections from any type of price gouging."
The savings on a 16-gallon fill-up would be about $2.75.
The larger portion of the gasoline tax remains.
The Governor said the cost to the state "could be" up to $50,000,000, depending on usage.
He noted that the impact is off-set by the taxes generated by higher process at the pumps.
He made the announcement as gasoline rose to $4.14 a gallon in Indiana, according to AAA.
Members of both political parties support the tax suspension.
Democrats, however, are critical, questioning the timing.
In 2022, Statehouse Democrats repeatedly called for the suspension of the gas tax starting in March when the tax hit 18.2 cents per gallon and peaked at 29.4 cents in August. Statehouse Republicans refused to suspend the tax then, even when the state was flush with federal cash.
House Democratic Leader Phil GiaQuinta (D-Fort Wayne) issued this statement:
"It's clear that Hoosiers are in desperate need of economic relief, and I'm in favor of anything that can provide that, including suspending the gas tax. However, it's been clear for a long time that Hoosiers are struggling, and it's frustrating that it had to get this bad before Indiana Republicans took action.
"Back in 2022, House Democrats called for a gas tax suspension when gas prices soared due to the Russian invasion of Ukraine. Our calls went unanswered by the Republican supermajority, who instead allowed Hoosiers to continue draining their wallets at the gas pump.
"I want to be clear: House Democrats support this suspension, but Gov. Braun and Statehouse Republicans are only cleaning up a mess that they helped create. Hoosiers are tired of unstrategic and unfocused foreign wars that cost American lives, drive up gas prices and raise the cost of living.
"This isn't leadership, it's a last-minute scramble to keep up the Indiana GOP's charade of being the 'fiscally responsible' party."
