Gregg Wants To End Indiana’s Gas Sales Tax

Posted On April 26, 2012

John Gregg

(Indianapolis, Ind.) – A candidate for Indiana Governor is calling for Indiana’s gas tax to be permanently eliminated.


As in most other states, high gas prices in Indiana have a stranglehold on people’s wallets. Tracking website GasBuddy.com says Indiana’s average price for regular unleaded is nearly $3.80 a gallon.


Democrat John Gregg said Wednesday that Hoosiers need direct, immediate relief. He said Indiana families would save up to $522 a year if the state gas tax were abolished.


“Gas isn’t a luxury. We don’t tax food. We don’t tax medicine. There’s all kinds of things we exclude from sales tax in Indiana. It’s time now we include in that gasoline,” Gregg told reporters during a press conference arranged in downtown Indianapolis with a gas station as his backdrop.


While Gregg’s proposal would do away with the state gas tax for good, it would not be the first time Indiana has stopped the tax. Indiana had a gas tax holiday for three months in 2000 when fuel cost $1.80 a gallon under then Governor Frank O’Bannon.


Gregg plans to make up for the loss of $540 million in tax revenue generated through the gas sales tax by finding savings elsewhere in the state budget.


“Other states that have done this have found that this is a way that consistently saves between five and six percent of their general fund,” said Gregg.


To permanently abolish the tax, however, it would take more than Gregg being elected. The Republican-controlled House and Senate would have to pass legislation.


Gregg also blasted Republican gubernatorial candidate Mike Pence for his “Washington style tax plan,” which would only save Indiana residents half as much, Greg claimed.




Pence Raises $1.8M, Gregg Gets $584K In 1Q