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Indiana approves $19.1 million in local road funding during gas tax holiday

a gas pump next to a brick wall

INDIANAPOLIS (WOWO) — Indiana counties, cities and towns will receive about $19.1 million in road funding reimbursements after the State Board of Finance approved the fourth round of payments under Governor Mike Braun’s gas tax holiday.

The approval covers the period from Aug. 1 through Aug. 31. The state will reimburse a total of about $103 million to the Motor Vehicle Highway Fund, the Local Road and Street Fund, and the Local Road and Bridge Matching Fund. Local governments will receive $19,129,920 of that amount.

The state also approved the annual transfer of the first $70 million in gasoline excise tax collections to the State Highway Road Construction and Improvement Fund.

According to the governor’s office, the gas tax holiday delayed the revenue normally collected in July, pushing the annual adjustment to a later distribution. Local governments will see a one-time decrease in their Motor Vehicle Highway Fund and Local Road and Street Fund distributions this month as a result.

The state says the adjustment does not reduce the reimbursement owed to local governments under the gas tax holiday. Officials said completing the transfer now also prevents the adjustment from being applied twice next year.

The State Comptroller’s Office has begun processing payments. Counties, cities and towns are expected to receive the reimbursements within two to three business days, according to the state.

Braun’s office says the gas tax holiday is intended to provide relief at the pump while maintaining funding for local roads and bridges.

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