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Counties To Lose $19 Million Dollars Over BMV Tax Refund

By Indiana Public Media News Staff

Posted November 21, 2014

All 92 counties in Indiana will be affected by the Bureau of Motor Vehicles' excise tax refund, starting in June of next year.

A miscalculation occurred within BMV causing some motorists to overpay excise taxes on vehicles registered between 2004 and 2014.

But, the Deputy Commissioner of Communications for Indiana BMV, Josh Gillespie says only three percent of motorists who paid during that 10 year period are being affected.

Letters were sent out to eligible motorists who will need to submit a claim form before they can receive their refund, which varies per motorist.

Counties were recently notified by the state auditor's office about how much money they will not be receiving as a result of the error. The two-year reduction will take effect next year, but Gillespie says that counties should not have received that money anyway.

"The refund was money that belonged to the drivers, you know, the taxpayers. It should not have gone to the counties," Gillespie said. "Basically, this should flat line everything and counties should be able to receive what they should have been receiving."

Counties will collectively lose $19.2 million dollars in excise tax revenue.

Monroe County will take a hit of about $300,000 dollars. Vigo and Bartholomew counties follow close behind with an average of $250,000 dollars. Smaller counties, such as Brown and Owen will see a negative amount of about $40,000 dollars.

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