INDIANAPOLIS (WBBM Newsradio) – Indiana will reimburse local governments for revenue lost during the state's temporary gas tax holiday, Governor Mike Braun announced Tuesday.
Braun directed his administration to repay cities, towns and counties for fuel tax revenue missed while the state's energy emergency remains in effect.
Under the plan, State Budget Director Chad Ranney will ask the Indiana Board of Finance on July 21 to approve a transfer of money from the State Highway Fund to cover lost revenue for April and May. If approved, the Indiana Comptroller's Office expects to distribute the money to local governments within five to seven business days.
Additional reimbursement requests will be made at the Board of Finance's August and September meetings if the tax suspension remains in effect. State officials said local governments are expected to be fully reimbursed by Nov. 1.
Braun said the reimbursements are possible because of the state's financial position, allowing Indiana to provide tax relief for drivers while continuing to support local governments.
The governor first suspended the state's gasoline sales tax in April after declaring an energy emergency tied to rising fuel prices. He later expanded the tax holiday to include Indiana's gasoline excise tax. Combined, the suspensions have saved Hoosier drivers up to 62.5 cents per gallon.
The current gas tax holiday is scheduled to remain in effect through July 7, though Braun has indicated it could be extended if conditions warrant.
