INDIANAPOLIS (WISH) – Beginning July 1, the state is changing the way it charges gasoline sales tax.
Indiana is doing away with its gasoline sales tax and instead charging a usage tax based on the previous month’s prices.
For customers, it means possibly avoiding paying higher taxes when service disruptions force prices to go up.
“Hopefully by then the prices will be down so the tax won’t be as burdensome as it is at the height of those high prices,” said Scot Imus the Executive Director of Indiana Petroleum Marketers and Convenience Store Association. The group represents gas station owners, and lobbied for the changes.
Starting on July 1, customers will be paying 22.9 cents a gallon in usage tax. The figure is based on the average gas prices in June.
All tax rates in future months will be based on the same system
The reason for the changes is to help streamline the system for how the state collects the revenue. Currently gas station owners self-report their sales, but starting next month the state will collect the taxes from the distributors.