Business and Economics

Senate GOP Plan To Help Propane Fuel Users

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January 29, 2014 — Indiana Public Broadcasting —

Indiana Senate Republicans are proposing a temporary tax exemption aimed at helping Hoosiers deal with exploding propane prices as the Midwest experiences a severe shortage.  Indiana Public Broadcasting’s Brandon Smith reports:

High demand, extreme winter weather and transportation issues have combined to create a severe propane shortage in Indiana. Costs are soaring with some Hoosiers reporting propane prices above five dollars a gallon. The Senate Tuesday approved an amendment that Shelburn Republican Senator John Waterman says is intended to help ease the burden of significantly higher propane prices:

Our plan will exempt the sales tax from any charge above two dollars and fifty cents per gallon on propane and this exemption would apply to propane bought in January, February and March. If this plan becomes law, customers will see a credit on their next propane bill.”

The exemption would work like this: for everything above two dollars fifty cents you pay, the sales tax is exempt…so if you pay five dollars a gallon, two dollars fifty is exempt. On five hundred gallons, that’s a savings of nearly 90 dollars. And Senate Tax and Fiscal Policy Committee Chair Brandt Hershman says the exemption won’t cost the state – its fiscal projections did not take into account the higher prices Hoosiers are experiencing.

 

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