BMV To Issue $29 Million In Excise Tax Refunds

About 180,000 Hoosiers will be getting refunds from the Bureau of Motor Vehicles after excise tax errors. 

Vehicles are taxed in Indiana based on value, which is based on the cost and adjusted for depreciation.  The BMV puts the data into a system, and Commissioner Don Snemis says the system failed to adjust for depreciation for about 180,000 people, dating back to 2004. 

The total refunds are expected to total more than $29 million. Working with the Department of Revenue, the BMV will send out letters in the next month to all Hoosiers affected by the mistakes. The letters will include a claim form people must submit to get their refund. 

Excise taxes are distributed to local and county governments; the state will cover the upfront cost of the refunds while adjusting distribution to locals over the next two years. Gov. Mike Pence authorized the BMV to hire an independent firm to audit the agency’s procedures and systems. The bureau settled a lawsuit last year after overcharging customers.