Indiana House Bill 1461

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Spectrum: Partisan Bill (Republican 1-0)
Status: Introduced on January 21 2025 - 25% progression
Action: 2025-01-21 - First reading: referred to Committee on Roads and Transportation
Pending: House Roads and Transportation Committee
Text: Latest bill text (Introduced) [PDF]

Road funding. Prohibits the Indiana economic development corporation from providing certain incentives to a person unless the terms of the incentive include a provision regarding the payment of costs for improvements to state or local transportation infrastructure. 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; and (2) transfer of money from the matching fund for specified transportation purposes. Provides for enhanced grant amounts for certain local units. Requires 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. Subject to a condition regarding a township's total reserves relative to the township's annual budget estimate, provides that a township must transfer any excess amount to a fund established for the improvement and maintenance of the roads and infrastructure within the township's boundaries. Allows the city-county council of a consolidated city to adopt an ordinance to place a referendum on the ballot to impose a referendum tax levy (referendum levy) to pay debt service on bonds issued by the metropolitan thoroughfare district of Marion County (thoroughfare district). Sets forth the procedures for holding the referendum, including the referendum's impact to taxpayers within the thoroughfare district. Specifies that a referendum using the procedure added by the bill may be placed only on the ballot for a general election. Requires the thoroughfare district's board to establish a referendum tax levy fund (fund) if the voters approve the referendum levy. Specifies that money in the fund may be used only to pay debt service on bonds. Provides that a county fiscal body may adopt a county option retail delivery fee (fee) that is imposed on retail transactions that are subject to the state gross retail tax and are delivered by a motor vehicle owned or operated by specified persons. Sets forth provisions regarding the collection, administration, and enforcement of the fee. Provides for the deposit of fee revenue, the manner in which the revenue is distributed to local units, the purposes for which the money may be used, and the inclusion of estimated fee revenue in a local unit's budget estimate.

Road funding.

Rep. Jim Pressel [R]

Date	Chamber	Action
2025-01-21	House	First reading: referred to Committee on Roads and Transportation
2025-01-21	House	Authored by Representative Pressel

Type	Source
Summary	https://iga.in.gov/legislative/2025/bills/house/1461/details
Text	https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1461/HB1461.01.INTR.pdf
Supplement	https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1461/fiscal-notes/HB1461.01.INTR.FN001.pdf
Supplement	https://iga.in.gov/pdf-documents/124/2025/house/bills/HB1461/fiscal-notes/HB1461.01.INTR.FN002.pdf