Road Funding Bill May Raise Wheel Tax In Parts Of The State

Apr 4, 2016

Credit Uwe Mayer / flickr.com/photos/intermayer/

The road funding bill signed into law last week could raise your taxes, depending on where you live in Indiana.

Forty-two counties already charge a vehicle tax.

But the road funding deal gives them room to increase the tax, and for the first time, cities have the power to impose their own wheel tax.

Seventy-nine cities are large enough – from Indianapolis to Plymouth- to be eligible for the tax.

John Perlich, spokesman for Fort Wayne mayor Tom Henry, says it’s too soon to say whether Fort Wayne will pursue the taxing authority.

“We’re certainly appreciative of the General Assembly, that they took a long look at road funding with the legislative session just ending a few weeks ago, we’re still in the evaluation process,” Perlich says. “We think that will continue for a number of weeks.”

Fishers Mayor Scott Fadness says Hamilton County has always balked at passing a wheel tax.

“The city of Fishers is going to take a look at that bill over the summer and evaluate that along with all of our other budget and financial needs,” Fadness says. “I don’t know that today we’re going to do it but we’re certainly going to take a hard look at it.”

Fadness endorsed the wheel tax expansion during the legislative session – saying it's a funding source that's been unavailable to Fishers because the Hamilton County Council hasn't approved it.