Indiana department of transportation.

Indiana · 2026 session · senate

SB 179Indiana department of transportation.

Status: Signed into law
Latest action: 2026-03-12 — Signed by the Governor
Primary sponsor: Michael Crider (Republican)

AGENCIES; Department of Transportation (INDOT)
CIVIL LAW AND PROCEDURE; Liabilities, Damages, and Penalties
ENGINEERS AND LAND SURVEYORS (Non-Elected)
PROPERTY; Generally
SCHOOLS; Buses
STATE GOVERNMENT; Contracts, Procurements, and Purchases
TAXES; Fuel and Vehicle Taxes
TRANSPORTATION; Aircraft
TRANSPORTATION; Commercial Trucking
TRANSPORTATION; Infrastructure; Highways, Roads, and Streets

Latest change summary

+1271 / −1785 words · LargeConfidence: high

This bill substantially restructures Indiana's local vehicle taxation and transportation funding framework. The legislation removes several transportation-related provisions including contractor liability protections for worksite accidents, restrictions on reducing road capacity, and references to bike infrastructure and greenways, while eliminating a 100% local matching requirement for sidewalk funding in consolidated cities. Simultaneously, it creates a new dual-tax framework requiring counties to adopt both a vehicle excise tax and wheel tax together, with grandfathering for pre-2013 ordinances. The bill establishes specific rate parameters (2%-20% for percentage-based taxes, $7.50-$50 or $7.50-$150 for surtaxes depending on county type), new eligibility criteria for state transportation distributions tied to tax adoption and transportation asset management plans, and detailed monthly allocation and distribution procedures. Counties containing consolidated cities gain additional surtax authority beginning July 1, 2025, contingent on INDOT-approved transportation asset management plans. The legislation also creates new procedural requirements including submission deadlines to the Bureau of Motor Vehicles (May 1, 2026 for initial submissions, September 1 annually thereafter) and establishes that municipalities with their own vehicle excise taxes will be excluded from county surtax allocations.

Eliminates 100% local matching requirement for sidewalk funding to consolidated cities, removing significant fiscal obligation for affected municipalities

Creates mandatory dual-tax framework requiring concurrent adoption of vehicle excise tax and wheel tax, with rescission restrictions when county loans or bonds are outstanding

Establishes new state transportation distribution eligibility contingent on local tax adoption by May 1, 2026, potentially affecting county revenue streams

Removes contractor liability exemption for motor vehicle accidents at construction worksites, exposing contractors to new legal risk

Authorizes new surtax options for counties containing consolidated cities (up to $150 per vehicle) beginning July 2025, creating substantial new local revenue authority

AI-assisted summary grounded in bill text — verify against official sources before relying on it for counsel work.

SB 179Indiana department of transportation.

Latest change summary

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