WABASH — The Wabash County Council conducted its second and final vote last week to approve county motor vehicle taxes.
The 6-1 vote came during the final reading of the Wabash County Wheel and Excise Tax on Motor Vehicles ordinance during last Thursday’s council meeting at the Wabash County Courthouse.
Residents can only be charged a wheel tax or excise tax dependent on their vehicle classification. Passenger vehicles will be excise taxed at $7.50 while commercial vehicles will be wheel taxed at $5. Both are the lowest annual charges allowed by Indiana lawmakers.
The tax would be in effect for a three-year duration, subject to adjustments after 2026. Amounts could have been as high as $80 per vehicle under state guidelines.
The taxes are anticipated to generate an extra $282,000 annually for road and bridge repairs, according to the council.
Council members said the decision is necessitated by state-level changes made to infrastructure funding. State lawmakers newly-passed House Enrolled Act 1461 requires local government to pass a municipal wheel tax and excise tax to receive additional state funding for road and bridge repair.
At stake is upwards of $700,000 in additional funding from the state’s Direct Distribution Fund.
“Nobody wants to do this,” said David Terflinger, councilman at-large, during last Thursday’s meeting. “Our hand was forced by the state.”
While public comments were encouraged prior to the council’s final vote, none were made.
The House Enrolled Act 1461 modifies vehicle excise tax and wheel tax provisions for counties, particularly those with consolidated cities, potentially allowing higher tax rates and specifying how the funds can be used. It also addresses bridge maintenance responsibilities and allows local county road and bridge boards to undertake low water crossing projects.
At-Large Councilmember Matthew Dillon remained the lone holdout in voting for the ordinance. He stated during a recent Wabash County Council meeting he believes the state’s request was akin to extortion and would vote nay as a show of protest.
“This is more than just symbolic for me,” added Dillon during the most recent meeting. “We are chasing peanuts ... a small amount considering the costs. The state is forcing us. I have several issues with this.”
There are 150 bridges in Wabash County. Typically, at least one to two of those bridges are repaired annually, costing upwards of a $1 million for each project. Council agreed every penny of additional funding is needed for such maintenance.
The county still stands to gain some additional funding from the Community Crossings Matching Grant Program. According to Wabash County Highway Superintendent Cole Wyatt, the community could receive as much as $1.5 million from that program this year.
Community Crossings Matching Grant Program provides funding to Indiana cities, towns, and counties to improve local roads and bridges. Launched in 2016, it’s a partnership between the Indiana Department of Transportation and local governments, aimed to enhance transportation infrastructure. The program offers matching funds, with the state covering a portion of the project costs, encouraging communities to invest in their infrastructure.
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