Gas tax breaks to cost state, local governments $533M

Local governments are expected to lose a collective $175 million, which the state has pledged to fully reimburse by November.

By: Leslie Bonilla Muñiz

Outlets: Indiana Capital Chronicle

Published: July 9, 2026

Words: 805

Last Updated: 1 week, 6 days ago

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The total price tag for Gov. Mike Braun’s gas tax holiday is in: the state of Indiana and hundreds of local governments are expected to lose out on a combined $533 million, with the impacts felt through October.

That also means motorists saved that much money at the pump.

Braun paused collections of the 7% sales tax on gas starting in April — after war with Iran prompted high fuel prices — and waived …

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