Eliminating the Gasoline Excise Tax

As your next Governor of Indiana, I am committed to collaborating closely with the General Assembly to eliminate the gasoline excise tax in our state. Hoosiers currently bear the weight of several separate taxes on gasoline:

Here’s an itemized breakdown of the gasoline taxes that Indiana residents pay:

• State Excise Tax: As of July 1, 2024, Indiana imposes a state excise tax of $0.35 per gallon on gasoline.
• State Use Tax: The gasoline use tax rate (7%) in Indiana for the period from August 1, 2024, to August 31, 2024, is 20 and three-tenths cents ($0.203) per gallon. This tax is calculated based on the statewide average retail price per gallon of gasoline, excluding other taxes.
• Federal Excise Tax: The federal government levies an 18.4 cents per gallon tax on gasoline and 24.4 cents per gallon on diesel fuel.

The cumulative state-imposed tax burden is substantial ($0.553 per gallon in state use and excise taxes) and affects every Hoosier who relies on gasoline for transportation.  I believe that Hoosiers should never have to pay use (sales) tax and excise tax on the same product.  Therefore, I propose the elimination of the state gasoline excise tax in Indiana.