(June 25, 2014) – Gas prices could be changing starting July 1, when a gasoline use tax law kicks in.
It replaces the prepaid sales tax on gas collected by gas stations. The Indiana Department of Revenue will calculate a rolling, monthly statewide average cost of a gallon of gas, and then add seven percent.
Gas stations will include the gasoline use tax in the price at the pump. The tax rate may change monthly based on the average Indiana retail price of gasoline.
The Department of Revenue will calculate the tax for the next month on the 22nd of the previous month. The first gasoline use tax will be determined before June 30, ahead of July 1, when the law takes effect. On that same day, the old gas tax is repealed.