JEFFERSONVILLE, Ind. — If you live near the border of Kentucky and Indiana, you've likely noticed a big difference in what you're paying to fill up at the pump.
AAA reported the average price for a gallon of gas in Louisville on June 22 was $4.87 per gallon. Across the border in Clarksville, AAA reported the average price was $5.08 per gallon. That's a 21-cent difference.
"No other state is inflicting such pain on their consumers as Indiana," Scot Imus, executive director at the Indiana Food and Fuel Association.
Imus said like most states, including Kentucky, Indiana collects a flat gas tax used for infrastructure to make repairs on things like roads and bridges.
Indiana's is set at 32 cents per gallon. That's 8 cents higher than Kentucky's, which is 24 cents per gallon.
But unlike Kentucky, Indiana also has a 7% sales tax on gas.
Every month, Indiana recalculates how much per gallon they'll be collecting in taxes. The state takes an average of all sales made in a 30-day period and takes 7% of that total to get the new rate.
For June, the gas use tax is set at 21 cents per gallon, but for July, Indiana's rate is going up by another 5 cents per gallon, bringing its total to 29 cents.
"39 states do just fine without putting a sales tax on gasoline," Imus said. "I think Indiana could do that. I think we could get rid of this second tax, if you will, altogether. But at the very least, do not raise it every month when that's not needed."
Indiana's road tax will increase by a penny on July 1, bringing the total additional price per gallon of gas to 33 cents.
That means come next week, Indiana drivers will be shelling out an extra 6 cents per gallon at the pump.
Imus said Indiana's road fund is well-stocked since the federal infrastructure funding brings nearly $7 billion to Indiana for road and bridge repairs.
"Do we need a Road Fund at 32 cents today and 33 cents July 1?" Imus said. "I think we ought to look at that. Then, of course, the whole 7% sales tax on a gallon of fuel is just causing a lot of heartache out there and a hardship."