Indiana Board of Finance Approves $121 Million Gas Tax Reimbursements

The Indiana State Board of Finance unanimously approved the distribution of $121,159,722 to offset revenue losses caused by a temporary gas tax holiday implemented by Mike Braun. The funds cover the collection period from April 8 to May 31 and will be allocated among the Motor Vehicle Highway Fund, the Local Road and Street Fund, and the Local Road and Bridge Matching Fund. Local government units will receive approximately $37.8 million of this total to maintain essential operations and infrastructure.

Governor Braun suspended the 7% sales tax on gasoline and the 36-cents-per-gallon excise tax in April to combat soaring energy prices linked to a war with Iran. While the state's budget reserves grew to nearly $4 billion by June 30, the total combined loss for local governments and the Indiana Department of Transportation is expected to reach $533 million over the full suspension period. The tax holiday is scheduled to end on August 6.

State Comptroller Elise Nieshalla confirmed that reimbursements will reach local bank accounts within two to three days. Further payments for the remaining affected months are expected to be finalized by November 1, pending additional board approvals. State officials characterized the move as a result of sound fiscal policies that allow the state to provide taxpayer relief without compromising community infrastructure.