Gov. candidate proposes elimination of sales taxes for gasoline purchases

Democratic gubernatorial candidate John Gregg proposed last week to end state sales tax on gasoline if he is elected this fall.

Gregg proposed that the approximately $540 million in tax dollars that would be lost by eliminating the fuel tax would be recovered through annual performance audits on the state’s budget, according to the Associated Press.

Drivers filling up at the pump in Indiana would save $5 to $20 a week, Gregg said.
Without Gov. Mitch Daniels seeking re-election, Gregg will face U.S. Rep. Mike Pence, a Republican, in the general election.

But in the primary election on May 8, both Gregg and Pence will run unopposed.

Rupert Boneham, a Libertarian, will also appear on the general election ballot in November.

Pence spokesman Matt Lloyd said in a statement Pence is not opposed to lifting the state tax on gasoline, although Pence does not believe it would be enough.

“He believes that it is no substitute for broad-based tax reform and the kind of energy policies that will reduce prices at the pump for Hoosiers and lessen our dependence on foreign oil,” Lloyd said.

For Gregg’s proposal to go through, Indiana’s Republican-led General Assembly would have to propose and pass legislation.

— Mark Keierleber