Indiana counties, cities and towns will continue to receive roadway funding under Gov. Mike Braun's Gas Tax Holiday after the State Board of Finance approved the next round of reimbursements today.
The approval covers Aug. 1 through Aug. 31 and is the fourth reimbursement since the holiday began. A total of $102,990,085.62 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 $19,129,920.09.
“Hoosiers deserve relief at the pump without sacrificing the roads and bridges our communities depend on,” said Governor Mike Braun. “My gas tax holiday has kept Indiana gas prices the lowest in the nation while ensuring counties, cities and towns receive the funding they need to maintain and improve local infrastructure. We’re putting money back in Hoosiers’ pockets while making sure our communities have the resources to keep Indiana moving.”
The board also approved the annual transfer of the first $70 million in Gasoline Excise Tax collections to the State Highway Road Construction and Improvement Fund (SHRCIF). This statutory transfer is based on fuel‑tax revenue collected by the State in July and normally shows up as an adjustment in August local distributions. Because the Gas Tax Holiday delayed the July revenue, this year's adjustment is appearing later than usual.
The transfer does not reduce the amount owed to local units for the suspension. It will, however, appear in this month's distribution, and local units will see a one-time dip in their MVH and LRS amounts. It is the same adjustment that occurs every August, shifted by the holiday.
The State Comptroller's Office has begun processing payments. Counties, cities and towns should receive reimbursements within two to three business days.
“Our office is steadfast in delivering reimbursements with accuracy and urgency as we work to restore roadway funding during the temporary suspension of Gas Tax collection,” said Indiana State Comptroller Elise Nieshalla. “Completing the annual SHRCIF transfer now is essential because it prevents this statutory adjustment from being applied twice next year, which would be a hardship for local units of government.”
“The State Board of Finance remains committed to responsible fiscal stewardship and ensuring local governments are kept whole as a result of the gas tax holiday,” said State Budget Director Chad Ranney. “As promised, each month the Board continues to carefully review each transfer request before it’s approved to ensure local road funding is distributed accurately and promptly. Throughout this process, the Department of Revenue and the Comptroller’s Office have played critical roles, helping us identify the holiday’s statewide impact and facilitating the timely distribution of funds to locals.”
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