More bad news on what it will cost to fill up at the pump. Several new laws in Indiana went into effect today, and one of those laws is how the gasoline tax rate is to be calculated. The old rate was a flat tax of 16.8 cents per gallon. Now, new rates will be 7 percent of the previous months average price of a gallon of gas, minus all the taxes that are included in that price.
For example, the average price of a gallon gas in Indiana, excluding all taxes, from the Mid May to Mid June was $3.26 a gallon. Seven percent of that price is 22 cents, meaning the gas tax rate for the month of July will be twenty-two cents. I spoke with one Evansville resident Sandy Atkins who said she knew about the new gas tax rate and she isn't happy because she feels gas prices are already high enough and feels increasing the tax rate on gas isn't a good idea. She went on to say that she got back from Las Vegas on Sunday where gas was almost as high as it is in Evansville. a
The new rate for July is the highest the rate has been since records dating back to 1994. The closest the State of Indiana has ever got to the new 22 cent rate was January of 2009 when the rate was 19.4 cents a gallon.
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