Indiana fuel tax break ends Dec. 4

Gov. Mike Braun signed executive orders Wednesday to renew Indiana's fuel tax suspension for another 30 days. The orders keep the state excise and usage tax on gasoline paused through Dec. 4. They also lift restrictions on untaxed diesel fuel for farmers and timber harvesters for the same period.

The suspension covers a combined 64 cents per gallon in state taxes for the month of November. Braun said affordability is his top priority. He stated he is using every available tool to help Hoosier families and farmers save money. He added that these savings remain in place while protecting funding for roads and infrastructure.

Indiana's average cost for a gallon of regular gasoline stood at $3.75 Wednesday. According to AAA, this price is 37 cents below the national average. This is the final anticipated fuel tax suspension under the current emergency framework.

Braun first lifted the state's 7 percent gasoline usage tax in April. He used an obscure energy emergency law for that move. The following month, he renewed and expanded the order to cover the 37-cent-per-gallon excise tax. Both taxes have remained suspended for the past six months.

In late September, Braun declared a separate energy emergency. That action lifted restrictions on untaxed diesel fuel. Such fuel is typically reserved for off-road vehicles like combines. The current emergency is set to expire on Dec. 4.

The governor would need to declare a new emergency to continue the suspensions after that date. Braun previously told reporters he is unlikely to issue another emergency so close to the new legislative session. That session is scheduled to begin in early January.

The Indiana Department of Transportation projected in August that the state would forgo $1.1 billion in revenue if the gasoline taxes were suspended through early December. In September, Braun told reporters the fiscal impact of the off-road diesel order would range from $1 million to $3 million.