GOVERNMENT & POLICY

Indiana BMV allocates $12.9M from optional ‘blackout’ plates to five-year modernization, including pay raises and new payment tech

Indiana Capital Chronicle reports the Indiana Bureau of Motor Vehicles said sales of the optional “blackout” license plate have generated $12.9 million toward a five-year BMV modernization plan. The BMV said the plates, launched in August 2025, have added $45 to registrations and funded planned staff raises and technology purchases.

BUSINESSINDY BRIEFBy BusinessIndy Editorial StaffCommentsPublished October 5, 2026 at 12:33 PM EDTLiving story · 2 sources

AI-generated illustration of the topic: Indiana BMV allocates $12.9M from optional ‘blackout’ plates to five-year modernization, including pay raises and new payment tech — AI illustration · Not a photograph of the reported event.

Indiana Capital Chronicle reports the Indiana Bureau of Motor Vehicles (BMV) said sales of the optional “blackout” license plate have generated $12.9 million toward the agency’s five-year modernization plan. The blackout plate, offered starting in August 2025, adds $45 to initial registration and annual renewals; the article says the BMV reported more than 380,000 blackout plates sold since launch and that about 314,000 are currently on the road.

The state and BMV leaders told the Chronicle that the revenue will fund investments including pay raises for many customer-facing BMV employees and technology upgrades. The article says the agency in 2026 purchased new payment machines that accept tap-to-pay and digital currency and added more 24/7 BMV Connect kiosks statewide. A recent agency review produced 13 recommended initiatives, including an AI chatbot, automated personalized notifications, upgraded branch cameras and digital driver’s licenses; Gov. Mike Braun directed a five-year modernization of the BMV’s roughly 20-year-old tracking and records software via an executive order last year.

WHY IT MATTERS

What changed and who this affects: The BMV is using money from an optional plate design to fund internal changes consumers and employees may notice. The “blackout” plate is an extra-cost option — the state added $45 to registration and renewals — and those fees are being pooled into a designated modernization fund, per the Chronicle’s report of BMV figures. The BMV says those proceeds are being used for staffing and technology updates rather than general state spending.

How the change works, step by step: When a vehicle owner chooses the optional blackout plate, the $45 premium is collected at registration or renewal and counted in the fund the BMV identified. The agency reported buying new payment terminals (accepting tap payments and what the article calls “digital currency”) and expanding BMV Connect kiosks in 2026; it also plans broader changes identified in a system review, like automated customer notices and a chatbot. The governor’s executive order set a five-year timeline to modernize the agency’s aging tracking and records systems.

What to watch next: The Chronicle’s reporting says pay raises are planned for many frontline employees and that the agency has a list of 13 modernization initiatives. Stakeholders should look for BMV announcements with specific timelines, details on when pay raises take effect, and progress reports on the individual technology projects (for example, the chatbot, digital driver’s license rollout, and branch camera upgrades).

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