Michigan City workshop warns state wheel-tax proposal could force local levy and double tax residents

A city official leading a March 14 Michigan City workshop told elected officials and residents that pending state legislation would require municipalities to adopt a local wheel or excise surtax to remain eligible for Community Crossings Matching Grants (CCMG), potentially forcing Michigan City to levy a fee on vehicle registrations.

The presenter, identified in the meeting as a city official leading the workshop, said the session ‘‘is specifically about the wheel tax for Michigan City’’ and that the goal was to explain local road funding sources and how the proposed state bill could affect Michigan City. The official said the city recently received a $1.5 million CCMG award and uses a mix of funds to meet required matches.

The workshop outlined the current local revenue mix that funds streets and the street department, including the Motor Vehicle Highway (MVH) fund, local roads and streets (gasoline tax distributions), riverboat revenue, and redevelopment commission funds. The presenter described state statute rules that historically set a portion of MVH funds as restricted for construction…