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By BOB SHRALUKA
WZBD.com
Citing the need for additional funding resources and the ability to gain state Community Crossing grants, Decatur City Council is in the process of setting up both a wheel tax and vehicle excise tax.
At its meeting Tuesday night, council passed on first reading an ordinance establishing both the wheel tax and the vehicle excise tax, which cover different types of vehicles.
The next step in the process of likely adopting the ordinance is the establishment of a public hearing at 7 p.m. at the next council meeting, on Tuesday, August 19.
In both cases, council did not go for the maximum allowable tax.
A vehicle excise tax applies to passenger vehicles, like cars, light trucks and motorcycles.
A wheel tax applies to larger vehicles, such as trucks exceeding 11,000 pounds, tractors, semi-trailers, and recreational vehicles.
An excise tax considers vehicle value and age, whereas a wheel tax is usually a flat rate or based on vehicle type and weight.
Mayor Dan Rickord said the State of Indiana will be making available some $80 million to be distributed around the state next year for street/road projects. To have any chance of capturing some of those funds, the city must have the wheel/excise taxes.
“We must have skin in the game; I’ve heard that a thousand times,” he added.
In addition, changes in the Community Crossing process will make it more difficult to obtain those grants next year, he pointed out.
“Moving forward, if you want to play the game, you’ve got to have a wheel tax,” Rickord said.
The city will administer the taxes and the Bureau of Motor Vehicles (BMV) will collect the monies. The taxes, which, if passed, will go into effect next year and will be collected at the time of vehicle registration.
The maximum amount the state allows to be imposed is $40 on the wheel tax and $25 on the excise tax. Decatur, though is proposing $30 and $20, respectively.
“All the cities I’ve talked to are going to the max, but I don’t feel comfortable with that,” Councilman Matt Dyer said.
“I’m kinda hesitant on this, it’s just more expenses for people,” Councilwoman Jenny Bowers-Shultz said. “But it’s good for the streets and sidewalks; it’s good for people getting outside.”
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