The State Board of Finance agreed Tuesday to reimburse about $139 million to local governments for July losses in road tax revenue during the suspension of state gas taxes by Indiana Gov. Mike Braun.
A release from Braun’s office said the State Comptroller’s office will distribute $46,192,430 to cities, towns, and counties over the next week. It marked the third reimbursement since April.
Earlier this month, Braun extended the suspension of state taxes on gasoline until Oct. 6, giving motorists a reprieve on high pump prices for the fifth straight month.
Braun said earlier he will seek approval from the General Assembly in January to tap into the state’s $4 billion surplus to cover its losses.
In this installment, the state is reimbursing local governments for tax money which would have been collected July 1-31.
“Continuing the exercise of transferring funds to make the locals whole during the gas tax holiday is a top priority for the State Board of Finance,” said State Budget Director Chad Ranney, who’s a Board of Finance member along with State Comptroller Elise Nieshalla and State Treasurer Daniel Elliott.
Braun began suspending the gas taxes on April 8 after gas spiked following the U.S. and Israel attacking Iran in February. The war stalled ships carrying oil through the Strait of Hormuz, a major global shipping route.
Normally, Indiana collects $59.9 cents per gallon in taxes at the pump.
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The taxes support road funding for the Indiana Department of Transportation along with local municipal governments including counties, cities and towns.
“Indiana has enjoyed the lowest gas prices in the country all summer while continuing to make local communities whole, protecting local roads and infrastructure,” said Braun.
On Tuesday, AAA listed Indiana’s average price of regular gasoline at $3.59 per gallon, compared to the national average of $4.33 per gallon.
Nieshalla said in the release her office was prioritizing the distribution so critical operations can continue at the local level.
Carole Carlson is a freelance reporter for the Post-Tribune.