in-20261007-IR-GOV260390FSA: EXECUTIVE ORDER 26-33 FISCAL IMPACT STATEMENT

LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS EXECUTIVE ORDER 26-33 FISCAL IMPACT STATEMENT Renewal of Energy Emergency and Waiver of Gas Sales and Excise Taxes Executive Order 26-33 Note Prepared October 5, 2026 Disaster Declared August 7, 2026 Order Issued September 30, 2026 Disaster Period August 7 - November 4, 2026 FEMA Disaster Declaration NA Nature of Disaster Energy Emergency Affected Counties All Counties Summary of Executive Order A 30-day extension of the waiver of the gasoline use tax collection will reduce revenue by approximately $60.0 M to $61.2 M. The executive order also extends the waiver of the gasoline excise tax for 30 days. This will reduce collections by an additional $93.3 M to $95.2 M. The total estimated revenue reduction is between $153.5 M and $156.5 M. Revenue Impact by Fund Local Road and Bridge Matching Grant Fund ($12.9 M to $13.2 M) Distributions to Local Units of Government ($38.5 M to $39.3 M) State Highway Fund ($102.1 M to $104.1 M) Total Estimated Impact ($153.5 M to $156.6 M) The waiver extension lasts from October 6, 2026, to November 4, 2026. The Governor may terminate the order before 30 days. Local Resources Money collected from these taxes is provided to counties and municipalities through (1) total lane-mile distributions from the Local Road and Bridge Matching Grant Fund (Community Crossings) and (2) the Motor Vehicle Highway Account distribution formula. The order will reduce funds deposited in the Local Road and Bridge Matching Grant Fund between approximately $12.9 M and $13.2 M. Local units that have adopted wheel tax and excise surtax rates are eligible to receive a revenue distribution based on total lane miles maintained within the local jurisdiction at the end of each fiscal year. Counties and municipalities will also receive about $38.5 M to $39.3 M less revenue through the Motor Vehicle Highway Account distribution formula. [The estimates were calculated using historical data on gasoline sales, the gasoline use tax rates published by the Department of State Revenue, and distribution factors used by the Comptroller's Office]. State Resources At the beginning of each fiscal year, the State Highway Road Construction & Improvement Fund (SHRCIF) receives the first $70 M in revenue from the collection of the gasoline excise tax. The tax moratorium in the executive order will temporarily reduce revenue to this fund until the tax is collected. Revenue deposited in the SHRCIF is tied to debt financing bonds for railroad crossing remediation projects. Gasoline use and gasoline excise tax revenue are also deposited into the State Highway Fund (INDOT). The waiver will reduce revenue by about $102.1 M to $104.1 M. Federal Resources The emergency order has no impact on federal resources. Agencies Affected Level Agencies Local Counties and municipalities State Indiana Department of Transportation; Department of State Revenue Information Sources Peoplesoft Financials; Comptroller's Office - Guidance, Memos & Reports; Indiana Department of State Revenue, Department Notice #2 - Gasoline Use Tax Rate. https://www.in.gov/dor/files/reference/dn02.pdf Fiscal Analyst: Bill Brumbach, 317.232.9559; Heath Holloway 317.232.9867