Daniels Examines Using 1981 Gas Tax Law
(INDIANAPOLIS) - The State Attorney General’s office says the governor doesn’t have the authority to suspend the sales tax on gasoline.
Governor Mitch Daniels asked the Attorney General for legal advice last month. Daniels has rejected several requests in the past two years to suspend the sales tax because of high gasoline prices.
The late Governor Frank O'Bannon used a 1981 law to temporarily suspend the tax in 2000. But the Daniels Administration wanted to know whether a threshold for declaring an "energy emergency" under that 1981 law was being met now.
A letter signed by Chief Deputy Attorney General Gregory Zoeller says that without further legislative action, the governor does not have the authority to suspend the tax within the intent of the 1981 statute. Gas prices have been on a general decline for the past several days.
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