Governor Mike Braun Extends Indiana Gas Tax Suspension

Indiana Governor Mike Braun announced on Wednesday the continuation of the state's gasoline tax suspension through September 5. The decision follows the expiration of a previous energy emergency that would have triggered a price increase of approximately 61 to 62 cents per gallon starting Friday, August 7, as the 7% state sales tax and 36-cent excise tax returned.

By declaring a new emergency, Braun reset the legal clock on his unilateral authority to suspend the taxes, bypassing the need for a special session of the General Assembly of Indiana. He cited global energy disruptions, including the Russia-Ukraine war in the Black Sea and wildfires in Alberta, Canada, as justifications for the move. To address the revenue gap for the Indiana Department of Transportation and local infrastructure projects, the state will use Highway Fund reserves projected to exceed $5 billion.

Democratic lawmakers questioned the legitimacy of the new emergency declaration. Representative Ed DeLaney claimed the extension violates state law and dismissed the reference to Canadian wildfires as an excuse. Representative Gregory Porter argued that the governor is stretching the definition of an energy emergency to avoid public anger over rising fuel costs.