Proposal to Increase Vehicle Taxes in Marion County Approved...

INDIANAPOLIS–An Indianapolis City-County Council committee approved a proposal Tuesday night that would increase vehicle taxes in Marion County.

The vote was 7-3 in favor of it by the Rules and Public Policy Committee. A full vote is set in front of the City-County Council on July 6.

If it goes through, here’s what the new stipulations would look like:

-For vehicles that currently pay the county vehicle excise surtax — including passenger cars, motorcycles, and trucks under 11,000 pounds — the proposal would replace the current fee structure with a flat $100 annual fee paid at registration. Currently, the surtax is based on 10% of the state vehicle excise tax, with a minimum charge of $7.50.

-For vehicles subject to the county wheel tax, the proposal would replace the current fee schedule of $10 to $40, depending on vehicle type, with a flat annual fee of $240 paid at registration.

The fees apply to different types of vehicles, but drivers would pay only one of those fees when registering their vehicles. The changes would go into effect on Jan. 1, 2027.

Those who support the plan argue it would help Marion County raise about $356 million over a five year period. That amount would grow to roughly $856 million if it is combined with state funds and other transportation revenue.

“At the end of the day, our colleagues do believe that this is the right path forward to ensure that our infrastructure is what we deserve as the capital of the state of Indiana,” City-County Councilor Maggie A. Lewis (D-District 5) said.

State Rep. Ed DeLaney (D-District 86) and State Sen. Greg Taylor (D-District 33) also urged councilors to move forward with it.

“Blame us if you want to blame anybody, but as legislators, it is our responsibility to come to the people and say, ‘What can we do to help your situation?'” Taylor said. “If somebody has a better idea, please bring it to us, but this is the only thing we can do right now.”

Critics of this idea say adding another tax on people while affordability concerns are already an issue with rising gas prices, utility bills, and groceries is tone deaf.

“The point is simple: we have options. We don’t have to raise the taxes on the same people again if we could choose solutions that are fair, sustainable, aligned with actual road use,” said one Marion County resident to the committee.

How this proposal would affect those in low-income housing was also brought up.

“An $80-a-year increase is the cheaper option in this proposal. My concern is this: $80 means something different to every single person in this room,” another man said to the committee.

Before the vote on July 6, there will be a public information session June 24 at 6:00 p.m. at the Warren Township Schools Administration Building.