in-20260722-IR-GOV260254FSA: EXECUTIVE ORDER 26-16 FISCAL IMPACT STATEMENT

LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS EXECUTIVE ORDER 26-16 FISCAL IMPACT STATEMENT Continuation of Second Energy Emergency and Waiver of Gas Sales and Excise Taxes Executive Order 26-16 Note Prepared July 8, 2026 April 8, 2026 Nature of Disaster Energy Emergency Summary of Executive Order A 30-day extension of the waiver of the gasoline use tax collection will reduce revenue by approximately $63.6 million to $67.1 million. The executive order also waives the gasoline excise tax for 30 days. This will reduce collections by an additional $88.9 million to $93.6 million. The total estimated revenue reduction is between $152.5 million and $160.7 million. Revenue Impact by Fund Local Road and Bridge Matching Grant Fund ($13.6 M to $14.4 M) Distributions to Local Units of Government ($10.6 M to $12.6 M) State Highway Fund ($58.3 M to $63.8 M) State Highway Road Construction & Improvement ($70.0 M) Total Estimated Impact ($152.6 M to $160.8 M) The waiver will continue through August 6, 2026. The Governor may terminate the order earlier. 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 $13.6 million and $14.4 million. 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 FY 2026. Counties and municipalities will also receive about $10.6 million to $12.6 million 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 receives the first $70 million 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. Gasoline use and gasoline excise tax revenue are also deposited into the State Highway Fund (INDOT). The waiver will reduce revenue by about $58.3 million to $63.8 million. 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