Indiana gas tax rising slightly in August despite price drop

INDIANAPOLIS (AP) — Indiana’s sales tax on gasoline will actually rise slightly starting Aug. 1 even though pump prices have dropped more than 11% from a month ago.

The Indiana Department of Revenue announced Monday that a total of 62.4 cents per gallon in state sales and highway taxes will be charged during August.

That will be up three-tenths of a cent from July’s record-high rate based on the agency’s calculations of statewide average gasoline prices over the past month, despite AAA reporting Indiana’s average price dropping 57 cents from a month ago.

Republican legislative leaders have rejected calls from Democrats to suspend state gas taxes.

• WISHTV.com gas price tracker
• Indiana gasoline use tax hits highest rate since 2014