Economic lockdowns from the Coronavirus is having a severe downturn in state’s tax revenue from gasoline and diesel sales. Indiana was no exception, but has somewhat rebounded.
Scott Manning, Indiana DOT spokesman, observed a quicker rebound in truck traffic than passenger vehicle traffic. In the early days of the pandemic, Manning said truck and passenger vehicle traffic dropped sharply. However, truck traffic started climbing back quickly and, within 30 days, had reached levels close to the normal baseline of about 27 million vehicles miles traveled daily.
By early September, Manning said truck traffic levels were about 5% higher than normal. On average, Indiana collects approximately $30 million monthly in diesel tax revenue. An increase of 5% in truck traffic translates to potentially about $1.5 million in additional diesel tax revenue per month above the baseline.
At its lowest point, passenger vehicle traffic in Indiana tumbled to about 55% below normal levels (average daily vehicle miles traveled for passenger vehicles is approximately 204 million). As of early September, it still was down about 8%.
Manning said INDOT estimates revenue for the year to be down by about 15%, which translates to approximately $145 million.Transport Topic