in-20260603-IR-GOV260111FSA: EXECUTIVE ORDER 26-09 FISCAL IMPACT STATEMENT

LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS EXECUTIVE ORDER 26-09 FISCAL IMPACT STATEMENT Declaration of Energy Emergency and Waiver of Gas Sales Tax Executive Order 26-09 Note Prepared April 13, 2026 Disaster Declared April 8, 2026 Order Issued April 8, 2026 Disaster Period April 8 - May 8, 2026 FEMA Disaster Declaration NA Nature of Disaster Energy Emergency Affected Counties All Counties Summary of Executive Order A 30-day waiver on the collection of the gasoline use tax will reduce revenue by approximately $41.2 M to $43.3 M. Revenue Impact by Fund Local Road and Bridge Matching Grant Fund ($8.8 M to $9.3 M) Distributions to Local Units of Government ($2.3 M to $2.4 M) State Highway Fund ($30.2 to $31.7 M) Total Estimated Impact ($41.2 M to $43.3) The wavier lasts from April 8, 2026, to May 8, 2026. The Governor may terminate the order before the 30 days or extend the duration. Local Resources Money collected from the gasoline use tax 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 $8.8 M and $9.3 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 FY 2026. Counties and municipalities will also receive about $2.3 M to $2.4 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 Gasoline use tax revenue is also deposited into the State Highway Fund (INDOT). The waiver will reduce revenue by about $30.2 M to $31.7 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