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Council Committee Advances Marion County Wheel Tax

Designed to unlock a $50 million state match, the proposal now moves to a July 6 full council vote where Mayor Joe Hogsett could veto it.

Overview

  • A City-County Council Rules and Public Policy Committee voted 7-3 Tuesday night to recommend replacing Marion County's excise surtax with flat annual vehicle fees of $100 for most passenger vehicles and $240 for larger vehicles.
  • Council leaders say the measure is meant to raise roughly $50 million in new local revenue so the city can qualify for a matching $50 million from a state road-funding program with rising local match requirements.
  • Republican committee members voted against the proposal and numerous residents testified that the higher fees would strain household budgets and that the council should pursue other funding options.
  • If the full City-County Council approves the measure on July 6 the fees would take effect on Jan. 1, but Democratic Mayor Joe Hogsett has publicly opposed the plan and retains veto authority.
  • Supporters warn inaction risks losing state funds and raising long-term repair costs while opponents question whether the city has proven it will deliver better road work and whether the fee structure is equitable for low-income households.