Indianapolis City-County Council members overrode Mayor Joe Hogsett’s veto on an excise and wheel tax on vehicles Monday night, enacting a new measure that will bring $100 million to repair Marion County’s crumbling roads next year.
The vote came at a meeting punctuated with tension and disagreement, where Hogsett introduced his $1.9 billion proposed 2027 city budget. And vocal opponents of data centers interjected throughout the proceeding until the council advanced a moratorium on the developments.
“We all recognize that the infrastructure in our community is absolutely horrible, and again, it required us to take a hard vote in order to secure $50 million dollars," said Council President Maggie Lewis (D-District 5).
Under the new ordinance, most Marion County vehicle owners will pay a $100 annual excise surtax, up from a $7.50 minimum. Owners of buses, trucks, trailers, tractors and other vehicles will pay a flat $240 wheel tax up from fees that range from $10 to $40 depending on the vehicle type. The council first approved the measure July 6.
Hogsett had argued against the tax. He vetoed the proposal July 16 because he said it would create additional financial burdens for struggling Indianapolis residents.
The vehicle tax
State legislation passed in 2025 and 2026 requires matching funds to unlock state funds for road repairs. In a presentation for the mayor’s 2027 budget, City Controller Abby Hanson said Hogsett’s office had identified $50 million instead of relying on an increased vehicle tax.
These included: $20 million in local income tax, $5 million in stormwater fees, $10 million in a proposal submitted with the budget, and $15 million from projected spring supplemental income tax distribution.
But Council Democratic members sought a vehicle tax, known as Proposal 192, to use funds raised by higher local vehicle registration fees to match the state fund for road repair and maintenance.
The caucus leadership said in an Aug. 5 statement that they didn’t have the votes to override the mayor veto but would still be considering it. Council rules mandate that the body take action on a mayoral veto at its next meeting.
After Hogsett’s presentation, the mayor left the council room. Councilors took up the veto action as the first order of unfinished business.
Before the vote, Democratic members expressed dismay over the difficult choice they said they had to make in the face of the state’s road fund matching law. They blamed Republican state lawmakers, saying the state sits on billions in reserve funds that they could send to local governments, but instead forced them to make the difficult decision to raise taxes on local residents.
Republican council members said council Democrats could have taken the mayor’s proposal instead of overriding his veto on the measure.
“What we saw tonight with the tax increase was a pretty disgusting display of celebration, knowing that they took the easiest possible route to raise money," said Minority Leader Brian Mowery (R-District 25).
The council ultimately overrode the veto in a 17-7 vote.
The 2027 budget proposal
Hogsett introduced his 2027 budget by celebrating several of the programs that he wants to continue funding, including gun violence prevention and housing programs.
The budget focused on four priorities, including public safety, infrastructure, personnel and governance, and quality of life.
“The budget before you is more than a ledger of revenues and expenditures: it is a reflection of what can be achieved when we commit ourselves to working together, to supporting our public servants, and to investing in our residents,” Hogsett said. “Our city has never backed away from challenges.”
The budget included initiatives like the construction of a new Indianapolis Metropolitan Police Department North District headquarters at 38th Street and Sherman Drive and an emergency shelter, while continuing to fund existing housing and gun violence reduction programs.
The mayor’s office said the budget reflects increased pay and benefits for city employees, revitalization of parks, and housing programs including permanent supportive housing efforts like Streets to Home Indy and the city’s master leasing program.
The council will consider the budget before a vote Oct. 19, where at least 13 of 25 council members must approve of it to pass.
Councilor Bain resigns
The City-County Council normally has 25 members, but Friday, member Joshua Bain (R-District 21) resigned Friday after Gov. Mike Braun appointed him to serve on the Indiana Utility Regulatory Commission, which oversees rate cases for utility companies like Indianapolis-area AES Indiana. This left the council with 24 total votes at its Monday meeting. The Marion County Republican Party has 30 days to select a replacement for the empty seat.
Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org.
