The Indiana State Board of Finance on Tuesday approved its third round of reimbursements to local governments for losses incurred during the state’s gas tax suspension.
The three-member board unanimously approved roughly $139 million in reimbursements from the State Highway Fund to replace July revenue from Indiana’s gasoline excise and use taxes. The State Comptroller’s Office will begin distributing $46 million to counties, cities and towns this week, according to a news release from Gov. Mike Braun’s office.
“Indiana has enjoyed the lowest gas prices in the country all summer while continuing to make local communities whole, protecting local roads and infrastructure,” Braun said in the release Tuesday. “I want to thank the Board of Finance for their partnership in once again helping us keep that promise.”
The board previously approved reimbursements for losses incurred from April through June at its July and August meetings.
Braun suspended Indiana’s gasoline use tax in April to provide relief for motorists as fuel prices escalated amid the war with Iran. He lifted the state’s gasoline excise tax the following month, both of which remain suspended through at least October 6.
The taxes are split between the Indiana Department of Transportation and counties, cities and towns to pay for infrastructure maintenance and repair.
Losses for local governments and the State Highway Fund are projected to reach $1.1 billion should the suspension remain in effect through Dec. 4.
Braun pledged to reimburse local governments for any losses incurred during the suspension, approved each month by the State Board of Finance, and intends to ask lawmakers to tap into the state’s $4 billion reserves to cover the state’s losses when legislators return in January.
“The Comptroller’s Office is committed to restoring funds to our local government partners and is prioritizing this distribution so critical operations can continue at a local level,” Comptroller Elise Nieshalla said in the release.
Treasurer Daniel Elliott added, “Indiana’s continued extension of the gas tax holiday is a reminder of what good fiscal stewardship and sound economic policies can allow us to do. I commend Gov. Braun for continuing his leadership on this issue and ensuring that Hoosiers have affordable fuel prices.”
The average price for a gallon of regular gasoline in Indiana hit $3.59 Tuesday, 17 cents higher than last week’s average but still lower than the national $4.32 average, according to AAA.
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