Association of Indiana Counties Community Forum Indiana Road and Highway Funding Neal Carboneau Research Manager Indiana Local Technical Assistance Program

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Indiana Road and Highway Funding 1.The Main Source of Revenue for the Local Roads and Highways 2.Other Sources of Revenue 3.How Is It Distributed 4.Why are distributions noticeably less this year 5.What else can be done

Indiana Road and Highway Funding The Motor Vehicle Highway Account or MVH account was established by Indiana Code IC Gasoline Tax IC cent per gallon cent per gallon cent per gallon cent per gallon 1980Average Price Times 8% (max rate 12 cents per gallon) 1981Average Price Times 8% (max rate 14 cents per gallon) 1982 Average Price Times 10% for the first dollar per gallon and 8% for everything over the first dollar = $.0111 per gallon (max rate 14 cents per gallon) cents per gallon cents per gallon cents per gallon (one cent dedicated to bonding and one cent dedicated to the State and one cent dedicated to local units.

Indiana Road and Highway Funding 1.The Main Source of Revenue for the Local Roads and Highways 2.Other Sources of Revenue 3.How Is It Distributed 4.Why are distributions noticeably less this year 5.What else can be done

Indiana Road and Highway Funding Motor Vehicle Highway Account Revenues (MVHA) (a few of the other revenue sources) Motor Fuel Tax (Gasoline) Special Fuel Tax (Diesel) Motor Carrier Fees and Taxes BMV (Bureau of Motor Vehicles) Fees Court Costs and Fees Other Misc Fees and Receipts Federal Traffic Safety State Police

Indiana Road and Highway Funding 1.The Main Source of Revenue for the Local Roads and Highways 2.Other Sources of Revenue 3.How Is It Distributed 4.Why are distributions noticeably less this year 5.What else can be done

Indiana Road and Highway Funding Motor Vehicle Highway Account Distributions (a few areas of distribution) State Police BMV (Bureau of Motor Vehicles) DOR (Department of Revenue) Motor Fuel Tax Division Traffic Safety Programs Highway Safety Plan State Trauma Registry Audit Expense

Indiana Road and Highway Funding Motor Vehicle Highway Account Distribution INDOT Share County Share City / Town Share Highway Road and Street Fund (LRS) State Highway Construction and Reconstruction Fund – SHCRF - INDOT

Indiana Road and Highway Funding 1.The Main Source of Revenue for the Local Roads and Highways 2.Other Sources of Revenue 3.How Is It Distributed 4.Why are distributions noticeably less this year 5.What else can be done

Factors Effecting Current Funding? Motor fuel tax (Gasoline) and special fuel tax ( Diesel) make up 71.9 % of the revenue into the MVHA Gasoline $0.18 per gallon Special fuel $0.16 per gallon As per gallon prices increase fuel sales decrease Fewer gallons pumped equals less revenue for roads and highways

Price per Gallon Gallons Pumped (Indiana) Highway revenue from gas tax CPI (cost of goods and services)

Price per Gallon Gallons Pumped (Indiana) Highway revenue from gas tax CPI (cost of goods and services)

Percent Change Municipal Cost Index 2000 – 2009 (

Factors Effecting Current Funding? Assumptions Petroleum products Would be the primary fuel source Would be economical to produce Gallons of fuel pumped is relative to miles driven Vehicle’s miles per gallon would stay consistent Highway revenues Will increase with the increase in the driving population. Will adjust with the cost of goods and services.

Indiana Road and Highway Funding 1.The Main Source of Revenue for the Local Roads and Highways 2.Other Sources of Revenue 3.How Is It Distributed 4.Why are distributions noticeably less this year 5.What else can be done

Local option highway user tax (LOHUT) Surtax < 11,000 lbs GVW Wheel Tax > 11,000 lbs GVW Only local optional tax specifically for road funding Passed Indiana legislature in 1980 Wheel Tax (LOHUT)

47 of 92 Counties have enacted this fund To stay in the county LRS formula determines the distribution between Cities, Towns and County Used for Roads and Streets in the County Collected Repair Maintenance Construction Indiana Code Wheel Tax (LOHUT)

Cumulative Bridge Fund Major Bridge Fund CEDIT - County Economic Development Income Tax CAGIT - County Adjusted Gross Income Tax COIT - County Option Income Tax Other Sources of Road & Highway Funding

County Tax Map Revised 01/08

What innovative ideas have other counties, cities & towns implemented? Other Sources of Road & Highway Funding Interlocal Agreements / Cost Sharing Non-motorized vehicles Sale of Salvage Items Disaster Relief Funds Bond Issue Cumulative Capital Development Gaming Funds Grants Innkeeper Tax

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