(INDIANAPOLIS) - Local governments in Indiana are expected to be repaid for revenue lost during the state's suspension of fuel taxes.
The Indiana Capital Chronicle reports Governor Mike Braun's administration plans to make local governments whole for gas tax revenue lost since May.
State Budget Director Chad Ranney is expected to bring a formal request to transfer funds from the State Highway Fund for April and May to the Board of Finance on July 21.
Once the transfer is approved, local governments are expected to receive distributions from the Comptroller's Office within five to seven business days.
What Drivers Saved
Hoosier drivers have been saving up to 62.5 cents per gallon through the suspension of both sales and gas taxes.
Braun first declared an energy emergency on April 8, temporarily lifting the state's sales tax on gasoline.
On May 6, he extended the suspension for another 30 days and also lifted the state's 36-cent-per-gallon excise tax. In June, Braun extended both suspensions through July 7.
The Indiana Capital Chronicle reports the combined 30-day tax suspensions are expected to cost the state $104 million and local units $52 million. Braun's initial 30-day suspension of the 7 percent sales tax on gasoline came with a separate $50 million revenue hit.
Local Payments
The Board of Finance includes the state budget director, comptroller and treasurer. The board can make budgetary transfers during the fiscal year.
Comptroller Elise Nieshalla says her office is committed to processing the distributions accurately and without delay.
Similar requests are expected at the August and September Board of Finance meetings, if needed.
Local governments are expected to be made whole no later than November 1.