Bauer Proposes Summer Gas Tax Suspension

Bauer proposes suspending the state’s gas tax and gas sales tax this summer.

gas pump

Photo: herzogbr (Flickr)

Democrats want to use some of a $1.1 budget surplus to create a gas tax holiday this summer.

House Minority Leader Pat Bauer wants to give Hoosiers some relief at the pump by suspending the state’s gas tax. Bauer says he wants the state to suspend the gas tax and sales tax on gasoline for three months – June, July and August. He estimates it will save motorists around $0.40 per gallon at a time when gas prices are skyrocketing.

“Why don’t we look to the workers?  Paying four dollars and seventeen cents for a gallon of gas is unconscionable,” Bauer said, adding suspending the tax for those months would cost the state $150-$200 million. He said he wants to take that money out of the surplus Republicans are proposing in the state budget. But Speaker Brian Bosma said it’s more important to save the proposed $1.1 billion for the long-term financial health of Indiana:

“That’s a constant struggle against those who want to spend every dime that might be on the horizon,” Bosma said.

Bauer said Democrats will propose the suspension in the budget conference committee, but Bosma said it’s unlikely the idea will get much discussion this late in the session.

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