Bill > HB1382

This bill allows counties to impose a local gasoline tax, known as the county option gasoline tax, which would be collected alongside existing state and federal gasoline taxes. Counties must hold public hearings before adopting an ordinance to implement this tax, and the rate must be set in increments of 0.25%, not exceeding 2% of gross retail income. This new tax cannot be imposed concurrently with a county wheel tax or a county vehicle excise tax. Municipalities within a county that adopts this tax can receive a portion of the revenue if they pass a resolution supporting the tax and indicating their desire for a share of the funds; this revenue is then distributed based on lane mileage. The bill also specifies that funds collected from this tax must be used for road and bridge construction, repair, or maintenance, or as contributions to specific authorities or grant programs. Additionally, it clarifies that this county option gasoline tax is considered a "listed tax" for administrative purposes and amends existing law regarding the local road and bridge matching grant fund to include eligibility for municipalities that adopt this new gasoline tax.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/house/1382/details