In Elkhart, fallout continues from the property tax relief law known as Senate Enrolled Act 1 enacted by the Indiana General Assembly last year. Elkhart officials want to tweak the wheel tax.
The city’s common council on Monday passed first reading of a bill to technically create the $25 tax when you renew your vehicle registration, but in reality drivers countywide already pay the tax.
Senate Enrolled Act 1 requires cities to levy their own wheel tax in order to continue receiving up to $1 million in state money for road work. Elkhart City Council Member Aaron Mishler says the Goshen council created its wheel tax last year because of the bill. Its tax is levied in addition to the county wheel tax.
Mishler says he initially opposed that idea. Elkhart waited to see if lawmakers changed the law this year, and they did.
“The legislation that was introduced and passed this year said that any new wheel taxes, you don’t double-tax," Mishler says. "So we will just be continuing the $25 that folks are already paying for registration. It just comes to the city instead of using the county as a pass-through.”
Misher notes that commercially registered vehicles would pay a little more. A new flat $40 fee would be an increase for some that now pay from $5 to $35. But he said SEA 1 also gave businesses personal property tax cuts that will far offset that increase.
