Marion County wheel tax advances to fund Indianapolis roads

Council committee backs vehicle fee hike to unlock $50 million in state road funding.

Car Driving on Road After Pothole Repair, Multiple Asphalt Patches, Poor Pavement Condition and Vehicle Damage Risk — Source: Vladimir Razguliaev / Getty

A City-County Council committee has approved a proposal to raise vehicle registration-related taxes in Marion County to help pay for road improvements across Indianapolis.

The measure passed by a 14-10 vote and would establish a new annual wheel tax based on vehicle size. Most Marion County residents who own vehicles weighing less than 11,000 pounds would pay a flat $100 fee each year when registering their vehicles. Owners of vehicles weighing more than 11,000 pounds would pay a flat annual county wheel tax of $240.

Council members hope the new fees will generate $50 million in local revenue, allowing Indianapolis to qualify for an additional $50 million in state funding for road repair projects.

Democratic Mayor Joe Hogsett has voiced opposition to the proposal and could choose to veto it. If the measure becomes law without a veto, the new vehicle registration taxes would take effect on Jan. 1, 2027.

Brad Klopfenstein joined Jerry Lopez and Brian Alvey on 9-Noon to discuss: