GOSHEN — A citywide wheel tax passed Monday night, but not without dissention.
The Goshen Common Council chamber was filled nearly to capacity Monday evening with most in attendance waiting to hear the debate on the final agenda item — a potential wheel tax that would financially affect nearly all city residents. During the allowed time for public input, numerous Goshen residents spoke passionately about the issue, some for it and others opposed.
Eventually, the ordinance was passed in amended form 6-1 by written vote, with only Councilman Doug Nisley in dissention. Before the tally was taken, however, much was said by both councilors and residents about why the ordinance was even up for consideration, why it was necessary and, for some, why it was an undue burden on residents.
The impetus for the wheel tax was an edict from the state that warned all Hoosier municipalities that if a wheel tax was not enacted, they would not be eligible for specific grant money from the state to help repair their streets and roads. This is indirectly a result of statewide budget cuts necessitated when the Indiana state legislature enacted property tax cuts through SB1, which also drastically reduced state funding to cities, towns and municipalities, which is requiring local governments across the state to scramble to make up for the lost revenue.
As passed, the approved ordinance will implement an annual $25 or $40 tax on each vehicle, including cars, trucks, SUVs, trailers, RVs, campers and motorized scooters. It was unclear whether golf carts that are plated with the city will be affected. The tax would be added to residents’ registration bills through the Indiana Bureau of Motor Vehicles.
The amendment that was passed by a vote of 5-2 would require the city council to reevaluate the wheel tax should the state change the requirements for the grant money it was threatening to withhold if the tax was not incorporated. Council member Linda Gerber and Council president Brett Weddell voted in opposition to the amendment.
“These funds can only be utilized for repairing our roads and streets,” said Goshen Mayor Gina Leichty. “This council body has never felt like it was a priority to move forward with a wheel tax because it was not being imposed by the state as a requirement to receive any kind of funding. But that has changed and so the council and I, as mayor, are responding to make sure that Goshen secures its part of that funding. ... We would like to lock in what we can. We believe that by having this modest, additional amount that it will help us secure some much-needed funding. There are $52 million worth of road repairs that are needed. This fund will only generate $750,000, so it’s a drop in the bucket. However, we feel that it is a prudent use of dollars, making sure that you, as residents of our community, are getting every opportunity to have access to better roads and streets.”
Several Goshen residents stood to address the council with their opinions on the matter.
“I’m here to speak in favor of passing the proposed wheel and excise taxes,” said Paul Stauffer. “No one likes new taxes, obviously, but under the circumstances, I think this is a no-brainer. These new fees are one of the few options available to the city to offset some of the projected revenue shortfalls. And they unlock some additional sources of funding from the state that we probably won’t get if we don’t pass this thing.”
Fellow Goshen resident Rob Brenneman agreed with Stauffer about the passage of the wheel tax.
“I know it’s a hard decision, and I don’t envy you having to vote for a tax, if you do, but I encourage you to do that. ... It’s no fun to pay taxes for anything, but for cars, I pay a lot in car insurance because I have two teens, so I guess $40 or $25 is just like a drop in the bucket compared to how much I have to pay for car insurance, but that’s another issue. But for people who use a car, we need infrastructure for that. It’s not free to drive. Somebody has to build a road. So I do have to pay have to pay and I don’t like it, but I support the tax.”
Not everyone was as willing to pay the extra fee, however. Several senior citizens spoke in opposition with the common argument that they are living on fixed incomes provided by Social Security, pensions and other sources and that the financial burden of an additional tax was part of their budget.
“We’ve been in Goshen 30 years, and I’m against the wheel tax because we’re on a limited income,” said Virginia Marks. “When we get our raise from Social Security, it’s going to go for Medicare insurance. Where do we get the money from? Do we have to give up food? We have to give up other things to pay for things we can’t afford. What do you want us to do, give our blood.”
“I would like to know why the city of Goshen or any municipality is going to buckle under to the state’s arm twisting to get any kind of funding,” said Nancy Brown. “I think it’s wrong. I think the property taxes did a disservice to the community. I don’t remember how many times we’ve been told that our taxes are going to pay for our roads. Our roads are going to be good. And it never happens.”
Immediately prior to the council taking a final vote on the amended ordinance, Weddell spoke on what would eventually become his official support of the wheel tax.
“Prior to the passage of SB1, we knew we were short for millions and millions of dollars, billions of dollars,” he said. “Even if SB1 hadn’t passed, we would be in this position anyway, talking about how Dustin Sailor and our engineering department could try to improve our streets and roads that people sitting here looking at us are trying to drive on.”
Following the vote, Goshen Clerk-Treasurer Richard Aguirre and city attorney Bodie Stegelmann were tasked with forwarding the city’s passed ordinance to the Indiana BMV no later than Sept. 1, as required by SB1.
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