The Indiana State Board of Finance on Tuesday approved its third round of reimbursements, totaling roughly $139 million, to local governments across the state, including those in the Wabash Valley, for revenue lost due to the ongoing suspension of state gas taxes. This allocation replaces July revenue from Indiana’s gasoline excise and use taxes, with the State Comptroller’s Office beginning distribution of $46 million to counties, cities, and towns this week.
This recent approval follows previous reimbursements for losses incurred from April through June, which were approved at the board's July and August meetings. Governor Mike Braun emphasized the state’s dual achievement, noting that Indiana has maintained low gas prices while also "protecting local roads and infrastructure" and ensuring communities are made whole. He also thanked the Board of Finance for their partnership in fulfilling this promise.
Comptroller Elise Nieshalla underscored the urgency of the distribution, stating that the Comptroller’s Office is committed to restoring funds to local government partners and prioritizing distribution so critical local operations can continue. Treasurer Daniel Elliott added his perspective, noting that the continued extension of the gas tax holiday highlights what sound economic policies can allow the state to do. Elliott commended Governor Braun’s leadership on the issue, ensuring affordable fuel prices for Hoosiers.
Governor Braun initially suspended Indiana’s gasoline use tax in April to provide relief for motorists as fuel prices climbed. The following month, he lifted the state’s gasoline excise tax. Both taxes remain suspended through at least October 6. The funds generated by these taxes are typically divided between the Indiana Department of Transportation and local governments, including counties, cities, and towns, to finance infrastructure maintenance and repair projects.
Projections indicate that if the suspension continues through December 4, total losses for local governments and the State Highway Fund could reach $1.1 billion. Governor Braun has pledged to reimburse local governments for all incurred losses during the suspension, with these reimbursements approved monthly by the State Board of Finance. For the state’s own losses, Braun intends to ask lawmakers to utilize the state’s $4 billion reserves when the legislative session resumes in January.
According to AAA, the average price for a gallon of regular gasoline in Indiana on Tuesday was $3.59. This figure, while 17 cents higher than the previous week's average, remains notably lower than the national average of $4.32 per gallon.
