Braun orders state to reimburse Dubois County for gas tax losses
Braun ordered Indiana to repay local governments for gas-tax losses, a move meant to protect Dubois County road funding after officials warned of an $800,000 hit.
Governor Mike Braun directed state agencies to reimburse local governments for gas-tax revenue lost during Indiana’s energy emergency after Dubois County officials warned the Highway Department could be short as much as $800,000 over four months. The first reimbursement request goes before the Indiana State Board of Finance on July 21 for April and May losses.
The State Highway Fund will backfill what counties, cities and towns missed while Braun suspended the gasoline use tax and later the gasoline excise tax. If the Board of Finance approves the request, the State Comptroller’s Office is expected to distribute the money within five to seven business days, with additional requests possible in August and September and a goal of making local governments whole by November 1.
The Highway Department relies on steady monthly fuel-tax distributions to pay crews, buy materials and keep contractors on schedule, and county leaders had already discussed using Local Income Tax funds as a temporary bridge if needed. The Dubois County Council reached consensus by a show of hands to support temporary emergency funding for the highway department, while Councilwoman Deena Lewis said the full shortfall may not be clear for months because fuel-tax money arrives with a roughly three-month lag. Councilman Michael Stallman said State Rep. Shane Lindauer suggested any legislative backfill would likely wait until the 2027 session.
Braun first declared the energy emergency on April 8 and suspended the gasoline use tax. He extended the emergency on May 6 and suspended the gasoline excise tax as well. The gasoline use tax was suspended from April 8 through July 7, and the gasoline excise tax from May 6 through July 7. The state’s gas-tax holiday was expected to cost Indiana about $104 million and local units about $52 million.
Indiana law sends 37% of the highway, road and street fund to the Local Road and Street Account for monthly local distributions, and another statute directs 12.13% of the net motor vehicle highway account to cities and towns and 25.87% to counties.
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