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Lawmakers Seek To Ease High Cost Of Propane During Shortage

A proposal would exempt the sales tax from any charge above $2.50 per gallon on propane.

propane

Photo: jasonwoodhead23 (Flickr)

The price of propane has jumped over the past few months from just under $2 per gallon to nearly $3 per gallon.

Indiana Senate Republicans are proposing a temporary tax exemption aimed at helping Hoosiers deal with exploding propane prices as the Midwest experiences a severe shortage.

High demand extreme winter weather and transportation issues have combined to create a severe propane shortage in Indiana.

Costs are soaring with some Hoosiers reporting propane prices above $5 per gallon.

The Senate approved today an amendment that Sen. John Waterman, R- Shelburn, says is intended to help ease the burden of significantly higher propane prices.

“Our plan will exempt the sales tax from any charge above $2.50 per gallon on propane, and this exemption would apply to propane bought in January, February and March,” he says. “If this plan becomes law, customers will see a credit on their next propane bill.”

The exemption would work like this: for everything above $2.50 you pay, the sales tax is exempt, so if you pay $5 dollars a gallon, $2.50 is exempt.

On 500 gallons, that’s a savings of nearly $90.

Senate Tax and Fiscal Policy Committee Chair Brandt Hershman says the exemption won’t cost the state because its fiscal projections did not take into account the higher prices Hoosiers are experiencing.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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  • sarahsandoz

    This bill, if passed, would be extremely helpful to many Hoosiers. My most recent propane bill was nearly $700. If these extreme temperatures continue, this could become more than a struggle to pay an extremely large heating bill, it could become a much more serious and potentially dangerous problem for many Hoosiers. Passing this bill would provide much needed help to Hoosiers, especially in a time when so many of us are experiencing financial problems. It would also engender good will towards our elected officials in a time where we have become very divided.

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