Putnam County drivers clamoring for improved local roads and bridges will help fund them out of their own vehicle registrations beginning in 2025.

In approving an increase to the wheel tax and motor vehicle excise surtax Tuesday evening, the Putnam County Council committed to raising an additional $1.3 million for county roads and bridges through increases to the county wheel tax and motor vehicle excise surtax.

Both taxes will be set at their maximum rate — $80 per vehicle for the wheel tax and $50 per vehicle for the surtax.

The county has actually had the wheel tax and surtax in place since 2013, with a current rate of $40 for the wheel tax and $25 for the surtax. With this in mind, the increase will be $40 per large vehicle (wheel tax) and $25 per small vehicle.

The taxes are charged as additional fees to annual vehicle registrations. Although the Bureau of Motor Vehicles administers the charges, all funds collected by the wheel tax and surtax come back to local entities without the state taking a cut.

The wheel tax applies to each bus, RV, semi-tractor, semi-trailer, trailer of more than 9,000 pounds and truck of more than 11,000 pounds with the exception of those owned by governmental agencies, religious or nonprofit organizations, schools and funeral services.

The surtax applies to cars, passenger vehicles, motorcycles, trucks with a gross weight of no more than 11,000 pounds, trailers with a gross weight of no more than 9,000 pounds and motor-driven cycles (mopeds).

According to research by municipal advisers Baker Tilley, the increase should take the county from about $974,000 in wheel tax/surtax revenue to an estimated $2,234,000.

However, the overall amount raised in Putnam County should be in the neighborhood of $2,671,000, with the remaining funds going to the City of Greencastle and the five incorporated towns in the county.

By Baker Tilly estimates, Greenastle could collect as much as $265,000; Cloverdale, $79,000; Roachdale, $28,000; Bainbridge, $25,000; Fillmore, $22,000; and Russellville, $17,000.

County Engineer Jim Peck noted that in Cloverdale, for example, that $79,000 could potentially be used as the 25 percent local match portion of a Community Crossings grant, thus potentially leveraging another $237,000 for a total project of as much as $316,000.

“It benefits not only the county, but across the board,” Peck said.

All money from the wheel tax and surtax must be spent on roads and bridges, a fact noted by Councilman Phil Gick.

“I don’t like taxes, but this tax can’t be spent for anything other than roads or bridges,” Gick said. “If someone wants to beat me up about it (increasing the wheel tax), I can say, ‘Fine, but you’re the one that beats me up about the roads and bridges.’”

“And we have to pay these taxes ourselves,” Council President Stephanie Campbell added.

Councilman Jay Alcorn noted that the rates have not increased since the taxes were enacted more than a decade ago, and the purchasing power of $25 and $40 per vehicle aren’t what they were at that time.

“I’m not necessarily in favor of raising taxes, but we can justify this,” Alcorn said.

Gick went on to opine that the biggest problem facing the county highway right now is its bridges, with nearly 100 that currently need to be replaced or repaired.

While it’s up to the Putnam County Commissioners to oversee how the money is spent, Gick would like to see some council input in the process.

“Another thing I’d like to see on the part of the commissioners is a commitment that if not all, a preponderance of these funds would go to bridges,” Gick said. “I think we’re at least holding our own on the roads, but the bridges are where we’re really falling behind.”

Local resident Mark Miller was in attendance Tuesday with a few questions about the increase.

He noted an April Banner Graphic article that said money had previously been available to fix bridges but had not been utilized. He asked if this was still available.

Campbell explained that before Peck took over at the highway department, the previous administration had been hesitant about doing federal aid bridge projects. While Peck has resumed Putnam County participation in the program, that does not make the old funds available, as they were not county funds to begin with.

Ultimately, Miller didn’t speak in favor of the new tax, but seemed to understand that costs have increased for the county just like its residents.

“I realize that all of us are in the same boat in that we’re frustrated. And we’re also frustrated that a road gets fixed, and in six months it’s torn up again,” Miller said. “What I’ve heard already is that there is more work than there is money.”

Noting the $1.3 million increase in funding won’t solve the whole problem, Gick made the motion first to increase the wheel tax to its maximum rate of $80 each. Alcorn seconded the motion.

Joining them with affirmative votes were Campbell, Danny Wallace, Keith Berry, Larry Parker and Wayne Huffman for a unanimous decision.

Gick also made the motion to increase the surtax to its maximum rate of $50. Berry seconded, and the rest of the council joined for a unanimous vote.

In other business, the council:

• Approved statements of benefits for three local companies receiving tax abatements.

One of these was for #1 and Co. (Spear Corp.) which, under the terms of its abatement, had 40 employees and planned to add 10. Instead, Spear has added 21 for a total of 61 employees.

Clary noted that Spear has sold to a St. Louis-based company but has kept its facility and management at the location west of Roachdale.

Spear’s work can also currently be viewed on network television, as the pool manufacturer has provided the mechanical work for the temporary pools at Lucas Oil Stadium, which is hosting the U.S.A. Swimming Olympic Trials through this Sunday.

Another abatement showing great growth is at POET Biorefining, which had eight employees at the time of abatement with a plan to add 42. So far, they’ve added 41 for a total of 49 employees.

“We’ve gone through our ups and downs with POET. They are back online,” Clary noted.

The other abatement was for Scorpion Coatings, an abatement that has been a matter of some contention over the years, as the Warren Township company has never come close to adding the 13 employees it planned to add back in 2015, having added only three.

However, Clary noted the changing nature of business, saying Scorpion is still doing well.

“They’re doing great,” she said.
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