Provides that the county vehicle excise tax does not apply to a vehicle registered in a municipality in which the municipal vehicle excise tax went into effect after June 30, 2025. Provides that a municipality in which the municipal vehicle excise went into effect after June 30, 2025, does not receive a distribution of county vehicle excise tax revenue. Provides that the county wheel tax does not apply to a vehicle registered in a municipality in which the municipal wheel tax went into effect after June 30, 2025. Provides that a municipality in which the municipal wheel tax went into effect after June 30, 2025, does not receive a distribution of county wheel tax revenue. Increases the maximum rate a county containing a consolidated city (consolidated city) may impose for the county wheel tax and the county vehicle excise tax (county transportation taxes). Requires a consolidated city to appropriate money received from county transportation taxes for the construction, reconstruction, and preservation of the consolidated city's highways. Beginning in 2026, lowers the percentage of funds distributed to counties, cities, and towns (local units) from the motor vehicle highway account that must be used for construction, reconstruction, and preservation of a local unit's highways if certain conditions related to pavement quality are satisfied. Removes a limitation on the Indiana finance authority's (IFA) authorization to issue revenue bonds or notes to finance highway and road construction projects while retaining the $10,000,000 limitation on annual payments on all the bonds and notes for railroad crossing upgrade projects. Reinstates a previously sunsetted provision to allow the IFA to issue grant anticipation revenue bonds or notes to finance highway and road construction projects. Allows the Indiana department of transportation (department) to submit a request to the Federal Highway Administration for a waiver to toll lanes on interstate highways. Provides that, if such a request for a waiver is granted, the general assembly is not required to enact a statute for the IFA to carry out certain activities related to the toll road project. Allocates responsibility for bridges in a county between that county and a municipality based on the size and location of the bridge. Allows a county fiscal body to pledge to levy ad valorem property taxes for certain transportation related purposes. (Current law provides that a county fiscal body may not pledge to levy ad valorem property taxes for such purposes unless the revenues are derived from the cumulative bridge fund or the major bridge fund.) Provides, on the basis of the balance of money in the local road and bridge matching grant fund (matching fund), beginning on June 30, 2025, and annually on June 30 thereafter, for the: (1) allocation of money in the matching fund among local units dependent on the existence of a wheel tax within the local unit; and (2) transfer of money from the matching fund for specified transportation purposes. Provides for a transfer of $50,000,000 to the consolidated city in Marion County for use on secondary streets only if the consolidated city in Marion County matches those funds with new funds that are not transportation funds. Provides for a distribution of the remainder of funds to each county and city based on total lane mileage. Requires, beginning January 1, 2028, a local unit to adopt an ordinance to impose the: (1) county transportation taxes; and (2) municipal vehicle excise tax and municipal wheel tax (municipal transportation taxes), unless the municipality is not eligible to adopt an ordinance to impose municipal transportation taxes; to be eligible to apply for a grant from the matching fund. Reduces the required local matching amounts applicable to certain local units, if the department approves a grant from the matching fund. Provides that a township must transfer a certain percentage of the township's budget to a fund established for the improvement and maintenance of the roads and infrastructure within the township's boundaries.

Statutes affected:
Introduced House Bill (H): 6-3.5-4-2, 6-3.5-5-2, 6-8.1-3-1, 8-14-1-1, 8-14-1-4, 8-14-1-5, 8-14-3-3, 8-14.5-6-1, 8-14.5-7-5, 8-15-3-36, 8-15.5-1-2, 8-17-4.1-1, 8-18-22-6, 8-23-30-1, 8-23-30-2, 8-23-30-3, 8-23-30-6, 34-28-5-5, 36-9-42.2-4.5
House Bill (H): 6-3.5-4-2, 6-3.5-5-2, 8-14-1-1, 8-14-1-4, 8-14-1-5, 8-14-3-3, 8-14.5-6-1, 8-14.5-7-5, 8-15-3-36, 8-15.5-1-2, 8-17-4.1-1, 8-18-22-6, 8-23-30-1, 8-23-30-2, 8-23-30-3, 8-23-30-6, 34-28-5-5, 36-6-9-7, 36-9-42.2-4.5
Engrossed House Bill (H): 6-3.5-4-2, 6-3.5-4-3, 6-3.5-4-13, 6-3.5-5-2, 6-3.5-5-5, 6-3.5-5-15, 8-14-1-1, 8-14-1-4, 8-14-1-5, 8-14-3-3, 8-14.5-6-1, 8-14.5-7-5, 8-15-3-36, 8-15.5-1-2, 8-17-4.1-1, 8-18-22-6, 8-23-30-1, 8-23-30-2, 8-23-30-3, 8-23-30-6, 34-28-5-5, 36-6-9-7, 36-9-42.2-4.5