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Lawmakers Seek To Ease High Cost Of Propane During Shortage

propane

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.

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