Chamber Considering Push for Commuter Tax

The President of the Indianapolis Chamber of Commerce says he plans to push for a commuter tax when the state legislature reconvenes next year.

Michael Huber believes it’s a way to generate revenue the city needs for assets including public safety and infrastructure.

He says the model Indianapolis uses now to pay for government services is based on one used about a century ago.

He says with more people living outside the county and commuting in, the model must change.

"We have over 200,000 people driving in from other counties to work in Indianapolis.  You have 50,000 people who live in Indianapolis driving out to live in another county," said Huber.  "This system we've set up in which you pay your income taxes where you live and not where you work has created some challenges especially now in the post property tax caps world."

Opponents argue that those who work in Marion County, but live outside are already contributing by spending money at restaurants, shops, and parking.

Another knock on a commuter tax is that it may encourage businesses to relocate outside of Indianapolis.  Huber admits that is a concern, but thinks the idea will work if it takes a regional approach.

"You can imagine that if Indianapolis went alone in passing a commuter tax, it would create all kinds of unhealthy incentives.  It could create incentives for businesses to move their workers out of Marion County," he said.  "We know that the reality is it's got to be a statewide solution and one that impacts regions and not just the individual municipalities."

Huber believes the Chamber will have “concrete solutions” on the commuter tax and addressing the county’s funding needs by January and present them to the General Assembly.