The civic record
Read. Follow. Verify.Indiana bill authorizes counties to adopt a local gasoline excise tax and restricts concurrent wheel and vehicle excise taxes
Last action · January 8, 2026: First reading: referred to Committee on Ways and MeansSponsor: Ben Smaltz
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What This Bill Proposed
Allows county fiscal bodies to adopt an ordinance imposing a county option gasoline tax of up to 2% on retail gasoline sales, effective July 1, 2026. Counties adopting this tax cannot concurrently impose a county wheel tax or county vehicle excise tax unless those taxes are first rescinded. The measure also establishes distribution procedures based on lane mileage and updates eligibility rules for local road and bridge matching grants.
Changes local revenue options for county governments by permitting a new gasoline excise tax that alters how road and street maintenance is funded, while restricting counties from stacking multiple vehicle-related taxes simultaneously.
- The Indiana General Assembly is the state's bicameral legislature responsible for enacting state laws and tax policies. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
county governments
County fiscal bodies gain the authority to adopt a new excise tax on gasoline and establish funds for road maintenance.
retail merchants selling gasoline
Retail merchants must collect, remit, and hold the county option gasoline tax in trust for the state or political subdivision.
municipalities
Municipalities may pass supporting ordinances to receive a proportional share of tax revenues based on lane mileage.
Key Facts
- A county fiscal body may adopt an ordinance to impose a county option gasoline tax on retail gasoline sales purchased from a metered pump.
- The county option gasoline tax rate must be in increments of twenty-five hundredths of one percent (0.25%) and may not exceed two percent (2%).
- A county that has adopted a county wheel tax and county vehicle excise tax may not concurrently adopt the county option gasoline tax without first rescinding those taxes.
- Counties and municipalities may use revenue from the county option gasoline tax only to construct, reconstruct, repair, or maintain streets and roads, contribute to specific authorities, or obtain local road and bridge matching grants.
Show all 6 facts
- Revenues collected from the tax shall be paid monthly by the state treasurer and distributed based on lane mileage proportions.
- Retail merchants must remit collected county option gasoline taxes to the department of state revenue and hold them in trust for the state or political subdivision.
Frequently Asked Questions
Can a county impose both a county option gasoline tax and a county wheel tax at the same time?
What can revenue from the county option gasoline tax be spent on?
How is the tax rate determined and capped?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Jan 8, 2026HouseIntroducedFirst reading: referred to Committee on Ways and Means
- Jan 8, 2026HouseAuthored by Representative Smaltz
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Alternative Local Option Taxation
The bill creates a structural trade-off in local taxation by requiring counties to choose between wheel/vehicle excise taxes and the new gasoline option tax.
Connected Entities
Sources
iga.in.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy50Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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