STATEHOUSE – Today the State Board of Finance voted unanimously to approve reimbursement for the April and May collections to Indiana’s counties, cities and towns related to Governor Mike Braun’s temporary Gas Tax Holiday and the goal to make local units whole.
The Indiana State Comptroller’s Office will begin issuing payments to local government partners today so that the full roadway‑funding revenue they would have otherwise collected during those months is restored. Distributions for the remaining months affected will occur pending future State Board of Finance approval. All reimbursements are expected to be completed by Nov. 1.
A total of $121,159,722 for the suspension period between April 8 and May 31 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 $37,834,329.55. The distribution amount broken out for each local unit can be found here.
“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. “Local governments depend on these dollars to maintain essential, budgeted operations, and the reimbursements will be received in their bank accounts within 2 to 3 days.”
“Today’s unanimous approval reflects the Board’s shared priority of keeping local governments whole,” said State Budget Director Chad Ranney. “Our team worked closely with the Department of Revenue to determine the statewide impact, and we appreciate the Comptroller’s readiness to distribute these funds as soon as possible.”
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 each month 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 State Comptroller’s Office is responsible for issuing the reimbursements and delivering the restored funding to counties, cities and towns.
“Indiana’s sound fiscal policies allowed this Board to take quick and decisive action to make local governments whole so they can meet the needs of Hoosiers across Indiana,” said State Treasurer Daniel Elliott. “This critical step ensures that cities, counties, and towns can continue to address infrastructure needs for their communities while taxpayers are given continued relief at the gas pump. It’s good governance at its best.”
What Local Governments Can Expect
- The reimbursement, covering April 8 through May 31, will be issued today.
- Additional reimbursement requests will be presented at upcoming Board of Finance meetings.
- All reimbursements are expected to be completed by Nov. 1, pending further approvals through the Board.
- Other revenue sources distributed through MVH and LRS have continued on their regular distribution schedules.
Reimbursement amounts for each local unit follow the same statutory MVH and LRS formulas used for normal monthly distributions.
Where to Find Distribution Amounts & Additional Information
