By BOB SHRALUKA
WZBD.com
There was no real choice if the City of Decatur wishes to continue dipping into the state trough which has paved numerous local streets in recent years, Decatur Mayor Dan Rickord said prior to the passage Tuesday night of a wheel tax and a motor vehicle license excise tax.
“It’s important that we play the game,” Councilman Matt Dyer said.
“Moving forward, if you want to play the game, you’ve got to have a wheel tax,” Rickord had said at a previous meeting.
The mayor explained that 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, he explained.
He also noted that Community Crossing monies – which have benefited Decatur greatly – are going to be harder to come by in 2026 as the state program will accept grant applications only once a year instead of the current norm of two.
“So they (CC grants) are going to be much more difficult to get,” he added.
Meeting Tuesday night, city council approved on a 4-0 vote (Councilwoman Jenny Bowers-Shultz was absent) a wheel tax of $30 and a vehicle excise tax of $20. Both were under the maximums of $40 and $25 allowed by the state.
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.
The city will administer the taxes and the Bureau of Motor Vehicles (BMV) will collect the monies. The taxes will go into effect next year and will be collected at the time of vehicle registration.
BIG BENEFIT: The Community Crossings program has proven to be a huge benefit to Decatur.
City Operations Manager Jeremy Gilbert pointed out that in one five-year period starting in 2018 (the city didn’t apply every year) the program brought $4,761,642.98 to the city.
Decatur’s matching funds needed to gain the grant amounted to $1,190,410.74.
“We don’t like taxes, but this has been really, really good to us,” Gilbert noted.
A project currently wrapping up in the city has seen some two miles of new sidewalks added and the milling and paving of approximately two miles of streets.
The project is funded by a Community Crossings grant of $1,456,125, with a 25% match provided by the city.
TAXED TWICE: During a public hearing prior to the final passage, Decatur resident Becky Cochran said city residents need to understand that they are also paying a $25 county wheel tax.
Cochran, a county employee, said, “I think it is important for people to realize those in the city will be paying both. There is a part of the population that this will hurt.”
A man asked several questions after he said, “I’d rather remain anonymous; that is my right” He held his phone up and recorded the entire exchange.
One of his questions dealt with the various sizes of vehicles to be taxed.
Winding up, he said, “I’m just trying to make sure we are not paying for each wheel. Thank you for your answers.”
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