(b) Before the twentieth day of each month, the county auditor shall allocate the money deposited in the county wheel tax fund during that month among the county and the cities and the towns in the county that are not adopting municipalities (as defined in IC 6-3.5-11-1 ) in which a municipal wheel tax went into effect after December 31, 2026. The county auditor shall allocate the money to counties, cities, and towns under IC 8-14-2-4 (c)(1) through IC 8-14-2-4 (c)(3), except that for purposes of making the allocations:

1. (1) the population of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0);
2. (2) the street mileage of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0) miles; and
3. (3) the allocation to a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is zero dollars ($0).

(d) A county, city, or town may only use the wheel tax revenues it receives under this section:

1. (1) to construct, reconstruct, repair, or maintain streets and roads under its jurisdiction;
2. (2) as a contribution to an authority established under IC 36-7-23 ; or

3. (3) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30 .

   As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.9; P.L.346-1989(ss), SEC.2; P.L.146-2016, SEC.10; P.L.147-2026, SEC.7.