INDIANAPOLIS (WANE) — As if the pain at the pump wasn’t enough, Indiana’s gas tax is going up.
According to the Indiana Department of Revenue, the gasoline use tax calculation for July comes out to 29.1 cents a gallon. That’s up from June’s rate, which was 24 cents.
The state gas tax is determined based on the statewide average price of gas from the month prior, which was $4.15 from mid-May to mid-June, multiplied by 7 percent.
Indiana’s gasoline use tax has steadily increased since February 2021, only showing month-to-month decreases during three months (October 2021, January 2022 and February 2022), according to a notice from the Department of Revenue.
Indiana drivers also pay an additional state tax of about 32 cents a gallon when they fuel up, with the money going toward infrastructure projects. There is also a federal gas tax of about 18 cents, although the state doesn’t have any control over that.
The 61 cents per gallon in state taxes on gasoline that Hoosiers will pay in July is up from June’s record-high 56 cents per gallon.
The increase in the gas tax emerges alongside calls from Indiana Democrats to suspend the tax to aid residents reeling from the worst inflation in 40 years. Republicans have said, though, that the gas tax should remain in place to continue funding the state’s highway construction program. They’ve instead called for gradually lowering Indiana’s individual income tax rate over the next seven years.
According to AAA, the current average price for a gallon of regular gas in Indiana is $5.134. A month ago, it was $4.610, and a year it was $3.012.
The good news, the nation’s average gas price declined Monday for the first time in nine weeks, according to GasBuddy.
WXIN News and The Associated Press contributed to this report.