$121M Transfer Approved to Fund Local Governments for Gas Tax Holiday

STATEWIDE — Indiana Gov. Mike Braun has directed his administration to compensate local governments for gas tax revenues lost during the gas tax holiday period.

The Indiana Board of Finance approved a transfer of $121,159,722.89 from the State Highway Fund to various highway and road funds to fulfill this commitment. The transfer covers gasoline use tax and gasoline excise tax revenue foregone from April 8 to May 31.

State Comptroller Elise Nieshalla said the Indiana Board of Finance voted in their meeting on Tuesday to help make local governments “whole” for the revenue that they normally would’ve received during that period of time. The portion that is going to local units of that $121 million is just shy of $38 million.

“The other portion of those funds is going to the motor vehicle highway fund and the funds that the state uses for state projects, ” said Nieshalla.

Comptroller Nieshalla said this action they’re taking will help Indiana cities and towns fulfill their budget operations in order to fund road, street, and bridge projects.

“We’re very excited to get this money to them in an expeditious manner so they can put these dollars to work to meet those essential needs,” Nieshalla said.

The state’s gas tax holiday ends in mid-August. Gov. Braun first declared an energy emergency in April, allowing him to issue emergency relief for 120 days.

“We had the war that affected gas prices and our governor saw to it that this gas tax holiday was put in place to offer certain relief and so we are at the service of Hoosiers to implement the distribution of those funds now,” Nieshalla said. “

Nieshalla said local governments can expect to receive reimbursement funds sometime this week. All reimbursements are expected to be completed by Nov. 1.

Another vote is expected at the next Board of Finance meeting to take care of the months after May.