Plymouth’s common council voted unanimously Monday night to create a municipal wheel tax that will take effect Jan. 1.
City attorney Jeff Houin said the move responds to a state law that changes how Indiana shares road money with local governments. “Unless there are changes in the elected officials responsible for this, momentum is to shift more of the burden to local taxes and away from the state,” Houin said.
House Enrolled Act 1461 trims the popular Community Crossings program and redirects much of the state’s Local Road and Bridge Matching Fund. Beginning in the fiscal year that starts next year, the state will set aside $100 million for Community Crossings, $20 million for railroad crossing upgrades and up to $50 million for Indianapolis if the city provides a local match. The state will distribute the remaining money to cities and counties that have a wheel tax or local highway user tax in place, prorated by lane miles, according to Houin. Without a wheel tax, Plymouth would not qualify for that pool.
Council member Linda Starr said she disliked adding costs for residents but argued the city had little choice. “I don’t like it, but it’s kind of like we’re being held hostage. If we don’t, we’re not going to get anything,” she said.
To take effect Jan. 1, the city must file the ordinance and documentation with the Bureau of Motor Vehicles by Sept. 1, Houin said. Details on the tax rates and how the city will use the revenue for road work will be finalized as the program rolls out.
