IN HB1382

Counties may adopt a county option gasoline tax of up to 2% on retail gasoline sales (in 0.25% increments), effective July 1, 2026, after holding a dedicated public hearing

Counties cannot impose this gasoline tax if they already have county wheel taxes and vehicle excise taxes in place; they must rescind those taxes first to adopt the gasoline tax

Revenue is distributed monthly to counties and participating municipalities based on lane mileage, with funds restricted to road construction, repair, maintenance, and contributions to regional transportation authorities

Municipalities within a county must adopt an ordinance expressing support for the tax to receive their share of revenue; those with their own municipal wheel/vehicle taxes are excluded from receiving distributions

Counties adopting this tax become eligible for distributions from the state's local road and bridge matching grant fund, with distribution amounts based on proportional lane mileage