(Indianapolis, IN) – Gov. Mike Braun has directed his administration to compensate local governments for gas tax revenues lost during the gas tax holiday period.
On Tuesday, the Indiana Board of Finance unanimously approved transferring $121,159,722.89 from the State Highway Fund to the Motor Vehicle Highway Account; the Highway, Road, and Street Fund, and the Local Road and Bridge Matching Fund to fulfill this commitment.
The transfer amount represents gasoline use tax and gasoline excise tax revenue foregone from April 8 through May 31.
“Over the last 18 months, we have right-sized government and done more with less. And because of that, we were able to make life more affordable for Hoosiers this summer with the cheapest gas in the country,” said Gov. Braun. “Today, we honored our commitment to ensure that this tax relief for Hoosiers had no adverse effect on the roads and infrastructure in our communities.”
The transferred funds will be allocated to local units of government under the standard statutory framework for gasoline use tax and gasoline excise tax collections, with the portion designated for local distribution available to local government units within two to three days.
“We want our local partners to know that the State Comptroller’s Office stands at their service, and their distributions have been moved to the front of the line,” said Comptroller Elise Nieshalla.
Similar transfer requests will be made at subsequent Indiana Board of Finance meetings to address revenue foregone during the remaining months of the gas tax holiday.
