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Michigan City Council approves vehicle excise and wheel taxes to shore up road funding
Summary
The council voted 9-0 Aug. 19 to adopt a municipal motor-vehicle excise surtax and a municipal wheel tax after a presentation from the mayor about declining riverboat revenues and state changes to local funding. The measures create new annual revenues the city says will help fund streets and reduce reliance on riverboat transfers.
The Michigan City Common Council voted unanimously Tuesday to impose a municipal motor-vehicle license excise surtax and a municipal wheel tax as the city moves to replace shrinking state and riverboat revenues for street maintenance.
Mayor Angie, outlining the fiscal context during an extended presentation, said the city expects to receive “about $8,000,000” in riverboat funds this year and warned that amount has declined from historic highs. She said the change in state law and other shifts mean the city must find new, local revenue streams to maintain services.
The ordinance adopted on third reading sets the passenger-vehicle excise surcharge at levels allowed by state law (the presentation described a maximum of $25 per passenger vehicle) and sets a separate wheel tax for commercial vehicles (a maximum of $40 was cited). The mayor’s staff provided a revenue estimate in the materials distributed at the meeting…
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