SB 0505 Summary

• Establishes a minimum gasoline tax rate of $0.18 per gallon, effective July 1, 2013, with automatic annual indexing for inflation based on the Consumer Price Index.

• Requires the Department of State Revenue to publish the indexed tax rate annually by May 1, with the new rate taking effect July 1 of each year.

• Directs gasoline tax revenue attributable to rates above $0.18 per gallon to be distributed as follows: 40% to the Indiana Department of Transportation, 30% to eligible counties/cities/towns for local roads and streets, and 30% to eligible counties/cities/towns for motor vehicle highways.

• Requires the Department of State Revenue to calculate monthly the amount of tax revenue from rates above $0.18 per gallon and report this to the Auditor of State for distribution purposes.