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Indianapolis Council Proposes $100 Car and $240 Truck Registration Fees to Fund Roads

Council leaders say a dedicated, road‑only fee would create the new revenue needed to claim up to $50 million a year in state matching funds.

Overview

  • The City-County Council plans to formally introduce the proposal on Monday, June 1, and has scheduled public committee hearings on June 9, June 11 and June 16 with a final council vote on June 16.
  • Under the plan passenger cars would pay a flat $100 annual county registration surtax and larger trucks would pay $240, replacing the current age-and-value based excise surtax system.
  • Council projections show the fees would generate roughly $70.95 million of new local road revenue in 2027 and about $355.75 million over five years, which combined with state matches could support about $855.75 million in road investment from 2027–2031.
  • State laws passed in 2025–2026 require escalating local matches to access the state program — $50 million in 2027 rising to $100 million by 2031 — and they mandate the 2027 match come from new revenue sources.
  • Mayor Joe Hogsett has issued an official statement opposing the fee increase on the grounds it would burden residents already facing higher costs and the council must now persuade voters and committee members at the scheduled hearings for the plan to move forward.