EVANSVILLE — Residents with opinions on the new proposed wheel and excise tax for Evansville have multiple chances and avenues to share those with elected officials.
City officials have plans to pursue a municipal wheel and excise tax to fund road and street improvements, prompted by new legislation from the Indiana General Assembly. The tax would range from $15 to $35 per vehicle, depending on type and size.
According to the city, the plan is in response to the loss of property tax revenue expected as a result of Indiana Senate Bill 1. Last session, the state also passed House Bill 1461, requiring cities to enact wheel and excise taxes to qualify for state funding for local roads.
Ordinance G-2025-17 will be introduced Monday at Evansville City Council for its first reading. Sponsors are Ben Trockman, D-First Ward; Zac Heronemus, D-Third Ward; Missy Mosby, D-Second Ward and Paul Green, D-At-Large.
The wheel and excise tax would be a part of the renewal process for a vehicle registration through the Indiana Bureau of Motor Vehicles.
The breakdown would be:
What is the approval process for the city to enact this tax?
The city council’s first reading and hearing on the ordinance will be held at 5:30 p.m. Monday in Room 301 of the Civic Center. The second reading and council vote will occur at 5:30 p.m. Aug. 25 at the same location.
For ordinances before city council, discussion among members and a public comment period occur on the night of second reading. This comes prior to the vote.
Every city council meeting also includes a time for public comment at the end of the meeting. Comments are limited to three minutes.
I can’t come to a council meeting. How do I let my representatives know my opinion?
Members of the Evansville City Council can be reached via email and phone. All of their contact information is available on the city website.
To send an email to all councilors, use CityCouncil@evansville.in.gov.
Wheel tax vs. excise tax
Cities with a population of 5,000 and above are allowed to institute a municipal wheel tax and vehicle excise tax. Both must be adopted at the same time, one cannot occur without the other by law.
As outlined by Accelerated Indiana Municipalites, wheel tax is applied only to commercial vehicles. For Evansville this will include:
A city can give a different tax rate to different types of commercial vehicles, but Indiana Code states they all have to be at least $5 annually and are allowed to be up to $40 annually.
Evansville has opted for a $35 rate.
Excise tax is for passenger vehicles including:
According to AIM, cities can also choose different rates for this tax, but they must be at least $7.50 annually and can be up to $25.
Evansville has opted for $25 for passenger vehicles and $15 for motorcycles.
Is anyone exempt from the wheel tax?
According to the proposed ordinance, there are some exemptions for commercial vehicles to avoid the wheel tax.
These include:
This article originally appeared on Evansville Courier & Press: Have thoughts on Evansville’s proposed wheel tax? Here’s how to voice them
Reporting by Sarah Loesch, Evansville Courier & Press / Evansville Courier & Press
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