Gov. Mike Braun (R-IN) extended Indiana’s gas tax suspension on Wednesday, appearing to bypass time limitations on his move to do so in April.
Braun initially signed an emergency order on April 8 that suspended the state’s 7% sales tax on gas for 30 days to address the impact of the war in Iran on the energy market, invoking Indiana’s energy emergency law. The governor has since extended the sales tax suspension to the 120-day maximum allowed under the law, with the relief set to expire Aug. 6, unless the legislature takes action.
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This week, Braun sought a workaround by signing off on a new emergency order under the energy law, this one citing disruptions to global oil shipping lanes caused by the war in Ukraine, as well as issues from the Canadian wildfires in the Alberta oil sands region. In addition to extending the suspension on the sales tax on gas, the new order extends a pause on the state gas tax, which is 36 cents per gallon, that Braun had first instituted in May. That means Hoosiers will continue to enjoy the roughly 60-cents-per-gallon reprieve they have had for months until at least Sept. 5.
“New conditions that continue to disrupt global energy distribution provide a new basis for a suspension of gas taxes,” Braun said at a news conference Wednesday. “Affordability is my top priority, and my gas tax suspensions delivered the cheapest gas in America for Hoosiers all summer. I’m keeping those savings going for Hoosier families, and my recommended budget will tap our reserves to keep state and local infrastructure projects fully funded.”
Questions had previously been raised about extending the gas tax suspension, as the governor said last month he didn’t have the power to continue the tax break past Aug. 6 without the legislature returning to the statehouse early for a special session.
This week, Braun told reporters that his new energy emergency provides a new 120-day window of authority, allowing him to “reset the clock.” Braun said he will reevaluate in 30 days to determine whether the pause on gas taxes will continue past Sept. 5.
Former Gov. Frank O’Bannon suspended the sales tax on gas over two decades ago, but did not extend that to the full gas tax, making Braun’s policies unprecedented.
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Indiana Attorney General Todd Rokita backed the legality of Braun’s latest actions, saying “nothing in Indiana’s emergency powers statutes prohibit the Governor from declaring separate emergencies based upon different factors.”
“It is within the Governor’s authority to give Hoosiers temporary and much-needed relief at the pump based upon changed conditions,” Rokita said in a statement.
