Marion County residents could face a vehicle registration tax hike in 2027.
On Monday evening, the full Indianapolis City-County Council voted 14-10 to advance Proposal 192 to Indiana Law.
The proposal would implement a $240 wheel tax for buses, recreational vehicles, semitrailers, tractors, trailers and trucks and a $100 excise tax for passenger cars, trucks, motorcycles, or vehicles under 11,000 pounds.
Right now a Marion County resident can expect to pay between $10 and $50 a year in registration fees.
The hike stems from prior legislation that outlines a state match funding program to help pay for infrastructure projects. Beginning in 2027 Marion County is expected to raise new revenue to receive a yearly state "match" of $50 million. If enacted, the allocation would amend damaged roadways and infrastructure across the county.
The new proposal, which spans from 2027 to 2031, would raise $855 million in revenue with its linear growth plan. Almost 65% of that sum "Supports 2027–2029 Capital Plan projects and additional projects beginning in 2030," according to the Council Infrastructure Plan.
But a 2026 audit of the Office of Public Health and Safety showed a history of mismanaged funds under Major Joe Hogsett. Residents expressed concerns in previous meetings about fairness, affordability, timing and — most important to many — fund allocation.
Councilor Vop Osili acknowledged the difficulty of the decision Monday night, but said he recognized change to city infrastructure is necessary.
"This is not an easy vote. Asking people to pay more never should be, but we must fix the issues our city is facing, especially those as important as the state of our roads and infrastructure," Osili said.
Councilor Nick Roberts spoke in favor of the measure, highlighting the fact that Marion County residents pay yearly to fix vehicle damage caused by poor road conditions.
"I do truly think it would be a generational mistake if we passed up this investment for better roads," Roberts said.
Mayor Hogsett has continuously opposed the vehicle tax hike proposal. He released a statement in May highlighting his concern for residents, stating that now is not the appropriate time to ask his constituents to shoulder a financial burden.
The Republican caucus of the City-County Council took to The IndyStar July 3, 2026 to express its concerns.
"We've advocated for more money for street and road repair. But we question the timing and hastiness with which Council Democrats are seeking to pass their $80 million tax increase to secure matching state funds," the caucus wrote.
John Barth, vice president of the City-County Council, defended the measure. Barth argued that its justification is paid daily by residents whose vehicles are damaged.
"I recognize that asking Indianapolis residents to contribute more at a time when household budgets are already under pressure requires justification," Barth said.
Despite the council's approval, the proposal could still fail. Mayor Hogsett will have 10 days to potentially veto the measure.
Contact WFYI reporting intern Chloe White at cwhite@wfyi.org
