Huntingburg Considers Wheel Tax Ordinance

Recent state legislation has tied eligibility for Community Crossings grant funds to a new wheel tax, prompting Huntingburg to consider adopting a new ordinance to ensure compliance. 

In order to maintain eligibility for Community Crossings grant funds, the state mandated that municipalities have a newly required wheel tax in place by the deadline of September 1. A signed and approved copy of the ordinance must be submitted to INDOT no later than September 1. The city of Huntingburg will submit their CCMG application next month. The wheel tax, applied on vehicle registrations, reallocates tax revenue from the county to the municipality without increasing the overall tax burden to residents. City Attorney Phil Schneider confirmed that residents will not be double-taxed, paying both the city and the county. 

The current vehicle registration fee breakdown shows a county wheel/surtax and excise tax. In the new model, the wheel and excise tax would be combined and the county’s portion would be reduced by the amount of the wheel tax, which would then go directly to the city. The tax’s structure, exemptions, implementation logistics, and potential impact on residents with multiple or heavy vehicles will be considered before the ordinance is adopted. Unless the county opts to raise their current tax amounts, which are currently below the maximum allowed, the change should not result in noticeable differences to the taxpayer. In his comments, Mayor Elkins explained, “It isn’t our intent to raise people’s taxes.” 

For more information on these and other updates, visit www.huntingburg-in.gov 

 - Drew Hasselbring