SB 288 revises Indiana’s fuel tax formulas for gasoline and special fuel. The bill changes how the gasoline license tax, special fuel license tax, and gasoline use tax are calculated beginning July 1, 2025, by tying future rates to the rate in effect on June 30 of the prior state fiscal year and limiting annual increases to the lesser of the existing statutory index factor or 1.02. For the gasoline use tax, the bill also caps the rate after August 31, 2025 at the lesser of the monthly computed rate or 1.02% of the prior year’s June 30 rate. It also repeals an expired subsection in the gasoline use tax statute.
The bill’s practical effect is to slow or constrain growth in fuel tax rates by replacing or reinforcing current indexing rules with a more restrictive cap. It amends Indiana Code sections governing gasoline and special fuel taxation, affecting fuel distributors, suppliers, consumers, and the Department of State Revenue, which must continue publishing monthly or annual rate notices and administering the tax calculations. The bill applies to taxes imposed after June 30, 2025, and includes a sunset-style expiration for one section in 2028.
Because no committee transcripts or recorded votes were provided, the available context does not show direct debate or formal support/opposition. Based on the bill text alone, the measure appears to be a technical tax policy adjustment rather than a broad policy overhaul, with the likely policy goal of moderating fuel tax increases and providing more predictable rate growth for motorists and fuel sellers.
There are no identified points of contention in the provided materials, but the main policy tension inherent in the bill is between revenue stability for the state and lower or slower-growing fuel costs for taxpayers. Any opposition would likely come from those concerned about reduced transportation funding growth, while support would likely come from motorists, trucking interests, and fuel consumers seeking tax restraint.
Impact
SB 288 amends Indiana’s fuel tax statutes in IC 6-2.5-3.5-15, IC 6-6-1.1-201, and IC 6-6-2.5-28 to change the rate-setting formulas for gasoline use tax, gasoline license tax, and special fuel license tax. It imposes new caps tied to the prior year’s tax rate and a 1.02 multiplier, limiting annual increases and potentially reducing future tax growth compared with current indexing methods. The Department of State Revenue would continue to calculate, publish, and administer the rates under the revised formulas. The bill applies to taxes imposed after June 30, 2025.
Sentiment
No committee discussion or vote history was provided, so there is no documented legislative sentiment in the record excerpt. From the bill’s structure, the measure appears fiscally conservative and tax-limiting, suggesting likely appeal to taxpayers and fuel users who favor predictable or slower-growing fuel taxes. At the same time, it may raise concerns among those who prioritize transportation revenue growth.
Contention
The central policy issue is whether Indiana should constrain fuel tax growth to provide relief and predictability for consumers or preserve a more flexible indexing system to support state revenue. Potential supporters would include motorists, trucking and freight interests, and taxpayer advocates. Potential critics would likely be transportation funding advocates and fiscal policymakers concerned that tighter caps could limit revenue available for roads and infrastructure. No specific named opponents or supporters appear in the provided materials.