Following several public comment meetings, the Indianapolis City-County Council Rules and Public Policy Committee advanced Proposal 192 on Tuesday.
The proposal seeks to increase vehicle registration fees for Marion County residents to fund road infrastructure improvements.
The increase includes a $240 wheel tax for buses, recreational vehicles, semitrailers, tractors, trailers and trucks. It would also require a $100 excise tax for passenger cars, trucks, motorcycles and vehicles under 11,000 pounds.
The tax would be paid based on vehicle weight.
Research by the Indianapolis City-County Council determined that Marion County needs $100 million in taxes yearly starting in 2031 to address its aging infrastructure. Proponents say that would ensure the county meets both the state match and infrastructure needs.
Following the hearing, Council President Maggie Lewis said no lawmaker wishes to tax residents, but roadway funding is necessary.
“I’ve said it over and over again, no elected official wakes up and wants to raise taxes or fees,” Lewis said. “However, we did have a variety of opportunities for the community to weigh in, share their thoughts and concerns. We’ve invited our counselors, all 25 members, to be a part of the conversation.”
One factor considered Tuesday night was the legislative role the statehouse played in Proposal 192. Councilor Jared Evans said this is what state lawmakers want local lawmakers to do.
“They don't want us to use current revenues. They want us to raise the wheel tax — the surtax,” Evans said. “That's exactly, directly coming from leadership’s mouths over there to us.”
Prior legislation passed by state lawmakers enabled Indianapolis to raise $50 million in 2027 to receive the state match of $50 million.
Councilor Michael Paul-Hart raised concerns about the quick vote to move forward.
“We spent more time on a snow plan than we have on this plan,” Paul-Hart said. “We hadn’t seen this until a couple of weeks ago, what we were proposing … So it's only been a couple of weeks that we’ve had the ability to digest this.”
Many residents testified against 192 on Tuesday, citing concerns about affordability and fairness. Jodi Beach said the increase will be hard for many.
"Tonight, you're being asked to raise taxes on registered vehicles, but before we do that, we look at fair, smarter alternatives that do not punish families, small business, or residents who simply own more than one vehicle," Beach said.
Mayor Joe Hogsett openly opposes the proposal, stating that many residents cannot afford a higher tax.
“Right now, families across our city are already stretched thin by rising costs as the gas pump, in utility bills, at the grocery store, and on everyday essentials,” Hogsett said via Instagram.
A final public hearing on Proposal 192 will take place on June 24. After that, the measure awaits a hearing and final vote from the full City-County Council.
