Goshen leaders hope a local wheel tax would guarantee state funding for road projects.
A proposed ordinance would impose a $25 annual excise surtax on passenger cars and motorcycles, starting in 2026. Heavier trucks and RVs would pay a $40 annual wheel tax.
Mayor Gina Leichty says a new state law guarantees some road funding to communities that adopt a wheel tax. “If we don’t adopt, we’d miss out, while other cities have the option to move forward,” Leichty told the common council Monday.
The new taxes are estimated to bring in $750,000 a year for road projects and sidewalk work. The mayor says this comes as Goshen has $52 million in street repair needs, and the city is set to lose $850,000 next year because of Indiana’s property tax reform, with more losses expected in the future.
Leichty said she doesn’t like adding a wheel tax, but it’s the option the state has given. “Cities like Goshen are now left to clean up a process that we did not ask for or design,” she said.
More residents spoke in favor of the new taxes than against them, noting the need for road maintenance.
Council member Doug Nisley cast the lone opposing vote on the ordinance’s first reading. He said he’d like to see the city look more at budget cuts before raising taxes.
“We’re looking at having to put a new water well in – you know the cost of that,” Nisley said. “It just seems to me that we’re kind of putting the cart before the horse here.”
Mayor Leichty said the city has already made several cuts to this year’s budget. Those include holding off on a new fire station and the reconstruction of the Shanklin Pool.
The wheel tax and excise surtax will be up for the council’s final approval on August 25.
