Eliminating the Gasoline Excise Tax

As your next Governor of Indiana, I am committed to collaborating closely with the General Assembly to eliminate the gasoline excise tax in our state. Hoosiers currently bear the weight of several separate taxes on gasoline:

Here’s an itemized breakdown of the gasoline taxes that Indiana residents pay:

• State Excise Tax: Indiana imposes a state excise tax of $0.34 per gallon on gasoline.
• Gasoline Use Tax: The gasoline use tax rate (7%) for the period from March 1, 2024, to March 31, 2024, is sixteen and nine-tenths cents ($0.169) per gallon. This tax is calculated based on the statewide average retail price per gallon of gasoline, excluding other taxes.
• Federal Excise Tax: The federal government levies an 18.4 cents per gallon tax on gasoline.
• Motor Carrier Fuel Tax (MCFT): For motor carriers operating on highways in Indiana, the MCFT rate is $0.34 per gallon of gasoline consumed during their operations. 

This cumulative tax burden is substantial ($0.51 per gallon in state use and excise taxes) and affects every Hoosier who relies on gasoline for transportation.  Hoosiers should never have to pay use (sales) tax and excise tax on the same product.

By working together, we can relieve this financial strain and ensure that hardworking citizens are not unfairly taxed. Let’s prioritize fiscal responsibility and advocate for a fairer system that respects the principles of representation and economic freedom.