Bill > SB0288

This bill modifies the taxation of gasoline and special fuel in Indiana by establishing a cap on annual tax rate increases. Specifically, the bill stipulates that the gasoline license tax and special fuel license tax rates will be calculated by multiplying the rate in effect on June 30 of the prior fiscal year by the lesser of either the statutory index factor or 1.02 (which represents a maximum 2% increase). For gasoline use tax, the rate will be the lesser of the amount computed under current law or the June 30 prior year rate multiplied by 1.02. This means that even if the calculated rate would normally be higher, it will be limited to a 2% increase from the previous year's rate. The changes will take effect on July 1, 2025, and are set to expire on June 30, 2028, providing a structured approach to fuel tax adjustments that prevents sudden or significant tax rate jumps. The bill aims to provide predictability and gradual adjustments to fuel tax rates for consumers and businesses in Indiana.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/288/details