Gas tax holiday expires on August 7
INDIANAPOLIS (WISH) — The Indiana State Comptroller’s Office will begin issuing payments to local governments to make up for the money lost during the first portion of Indiana’s gas tax holiday that lasted from April 7-May 31.
The State Board of Finance unanimously voted Tuesday to reimburse the state’s counties, cities and towns, which rely on gas-related taxes for road funding. Payments will total more than $121 million.
In a statement, Indiana State Comptroller Elise Nieshalla said, "Local governments depend on these dollars to maintain essential, budgeted operations and the reimbursements will be received in their bank accounts within 2 to 3 days."
"I knew we could replenish the locals and they'll get every penny,” Indiana Republican Gov. Mike Braun said Tuesday.
The reimbursements’ announcement came as AAA reported Tuesday evening that Indiana has the lowest average gas prices in the country, at approximately $3.34 for a gallon of regular gas. The low cost is presumably due at least in part to the state’s gas tax suspension.
"I can tell you 49 other states wish they had that gas tax holiday,” Braun said.
The latest gas tax holiday is set to expire Aug. 7. The Republican governor indicated Tuesday that he can’t extend the holiday any further by himself. “That would be something the legislature would have to do because I can't do anymore on my own.”
Local drivers reacted Tuesday to the news the gas tax will soon return, likely driving gas prices up.
“It ain’t gonna make me drive less,” Sean Mabry said. “Maybe other people, but not me.”
Christina Risher said that her expenses will go up because “every day I go around the city because I work one job, then I’ll go to my second job.”
Dallas Jones said, “When it comes to gas prices, I haven’t had an issue personally with whatever they might be.”
“Pay your bills, rent, all those things, and then on top of that, the gas prices keep going up,” said Ousmane Kaba. “It’s just been hard.”
“I’m not going to lie: My dad pays for most of my gas, so it’s coming out of his bill,” said Sam Williams, but then added, “I think they should extend it for a bit longer. The lower gas prices have been a lot nicer.”
Additional reimbursements for the remaining months of the gas tax holiday are expected. All reimbursements are expected to be paid by Nov. 1.