STATEHOUSE — Today the State Board of Finance approved the second round of reimbursements related to Governor Mike Braun’s temporary Gas Tax Holiday. Following the Board’s action, the Indiana State Comptroller’s Office began processing payments immediately to counties, cities, and towns, restoring roadway‑funding revenues for the additional days included in this reimbursement window.
A total of $130,450,219.59 for the suspension period between June 1 and June 30 will be reimbursed to the Motor Vehicle Highway Fund (MVH), the Local Road and Street Fund (LRS), and the Local Road and Bridge Matching Fund. Of this amount, local units of government will receive $43,805,267.02. The distribution amount broken out for each local unit can be found here.
“Our office is committed to processing these reimbursements quickly and with accuracy,” said Comptroller Elise Nieshalla. “This second distribution reflects the additional days included in the reimbursement window, providing local governments with the full roadway funding they would have collected during that time.”
What Local Governments Can Expect
- Local government partners will receive reimbursements within 2-3 days of processing.
- Additional reimbursement requests will be presented at future State Board of Finance meetings.
- Other statutory MVH and LRS revenue streams continue on normal schedules.
Reimbursement amounts for each local unit follow the same statutory formulas used for regular monthly MVH and LRS distributions.
“The Board remains committed to good fiscal stewardship and is focused on providing careful oversight as each transfer request is brought forward,” said State Budget Director Chad Ranney. “Our approval today ensures local road funding for this specific period will be distributed to local units of government both accurately and promptly.”
State Treasurer Daniel Elliott added, “These reimbursements continue to ensure that counties, cities and towns remain financially whole under the temporary suspension. Indiana’s sound fiscal footing allows us to maintain consistent support for local infrastructure while taxpayers receive relief at the pump.”
Understanding the Revenue Impact & Distribution Process
Indiana’s local governments receive roadway funding each month through two primary statutory accounts: the MVH account and the LRS account. These distributions rely heavily on fuel-related tax collections remitted monthly to the Department of Revenue.
Two taxes make up this roadway revenue:
- Gasoline Excise Tax (GET) – Distributed according to state law and shared among MVH, LRS, the State Highway Fund, counties, cities and towns.
- Gas Use Tax (GUT) -Distributed across several transportation- related funds, including MVH, the Local Road and Bridge Grant Fund that both state and local entities share.
During the Gas Tax Holiday, monthly GET and GUT collections have been temporarily suspended, affecting the portion of revenue that flows into both MVH and LRS. In collaboration with the State Budget Agency, the Comptroller’s Office calculated the statewide impact using Department of Revenue data and the Board of Finance authorized today’s reimbursements to ensure local governments remain whole. The Comptroller’s Office is responsible for issuing the reimbursements and delivering restored funding to counties, cities and towns.
Where to Find Distribution Amounts & Additional Information
- To see how much your local unit is receiving, click here.
- For more information, including MVH/LRS context, statutory references, distribution formulas and gas tax holiday FAQs, click here.
