Pfaff: ‘Suspending the state gas tax is the real relief that Hoosiers need now’

TERRE HAUTE – As the gas tax is set to hit a record-breaking rate of 80.4 cents in July, State Representative Tonya Pfaff (D-Terre Haute) is urging Statehouse lawmakers to suspend the state gas tax to provide desperately needed relief to Hoosiers at the pump.

“While I agree with Governor Holcomb’s plan to provide an additional $225 on the Automatic Tax Refunds, I am afraid that it won’t be enough for families with the economic pressures that already exist in our economy,” Pfaff said.

“People are likely to take that money and spend it chasing down goods they need at increased costs or that are drastically reduced in quantity due to supply chain issues. With those factors in mind, the additional refund money offers no meaningful, long-term relief to the financial hardships Hoosier families are facing.”

The Indiana Department of Revenue just announced another 5-cent hike on the sales tax of gasoline that is calculated each month on the previous month’s average retail price of gasoline. President Joe Biden has announced plans to potentially pause the federal gas tax of 18.4 cents, the smallest part of the three-part gasoline tax. If Indiana suspended the state gas taxes simultaneously with the federal government, that would save Hoosier motorists 80.4 cents a gallon.

“Our plan for suspending the gas tax is targeted and effective relief for something that is necessary for most people to work and take care of their families. It would be especially helpful for folks in rural communities that have to drive further for groceries, school, and work.” Pfaff added. “Additionally, suspension of the gas tax would be especially useful for our farmers struggling with high gas prices and even higher costs for fertilizer.

“With everything considered, it’s clear that suspending the gas tax is the real relief that Hoosiers need right now. And with our $6.1 billion surplus, we can most definitely afford it.”