Greenwood Leaders Approve New Road Funding Tax

The tax will add $25 a year for vehicles registered in Greenwood and $40 for buses, semis and RVs.

Dog Sitting in Back of Off-Road Vehicle — Source: Maxwell England / Getty

GREENWOOD, Ind — People who live in Greenwood will soon pay a new fee to register their vehicles after the Greenwood Common Council unanimously approved a wheel tax Monday night.

The tax will add $25 a year for vehicles registered in Greenwood and $40 for buses, semis and RVs. The money will go toward road repairs and help the city qualify for state transportation grants.

City leaders say the tax is needed because of changes to state funding rules. They say Greenwood residents already pay a Johnson County wheel tax, but state lawmakers removed a provision that would have prevented cities from adding their own tax on top of the county fee.

The move comes after Indianapolis leaders considered a much larger increase. The Indianapolis City-County Council approved a plan that would have raised the vehicle wheel tax from $20 to $100 a year for passenger vehicles, but Mayor Joe Hogsett vetoed that proposal.

Greenwood’s ordinance now heads to Mayor Mark Myers for final approval.