Indy Council Raises Vehicle Taxes, Overrides Hogsett Veto

INDIANAPOLIS — Indianapolis drivers will pay more to register their vehicles starting Jan. 1.

The City-County Council voted 17-7 Monday night to override Mayor Joe Hogsett’s veto of a new vehicle tax.

The new law sets a $100 annual registration fee for passenger vehicles. Owners of larger vehicles will pay $240.

Under the current system, passenger vehicle owners pay about $20 on average. Fees for larger vehicles range from $10 to $40.

Supporters of the new fees say they will generate about $356 million for road projects in Indianapolis. They also say the new fees could help the city qualify for up to $50 million in state money for roads.

Hogsett vetoed the proposal after the council approved it in July. The veto sent it back to the full council, where members voted Monday on whether to override him.

The council had also been considering another plan that would have set the passenger vehicle fee at about $65 while keeping the $240 fee for larger vehicles.

That plan is unlikely to move forward after Monday’s vote.

Hogsett had proposed using about $50 million in existing and expected city funding for road projects as part of his 2027 budget. The money could have been used to match state funding.

Without the vehicle tax or another source of matching money, Indianapolis would not qualify for the state’s $50 million road grant program.

Other central Indiana communities have approved similar fees.

Beech Grove and Greenwood will charge $25 for passenger vehicles and $40 for larger vehicles.

Indianapolis’ new fees take effect Jan. 1.