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Madison approves municipal wheel tax and vehicle surtax; opponents raise timing and equity concerns
Summary
The Madison Common Council approved an ordinance imposing a municipal wheel tax and a vehicle surtax Aug. 5, a measure council members said is intended to help replace projected property-tax revenue losses tied to recent state legislation; public commenters opposed the timing and argued the public needed more time to understand the change.
The Madison Common Council voted Aug. 5 to adopt an ordinance establishing a municipal wheel tax and a related municipal motor-vehicle excise surtax, a city measure the mayor and outside advisors said would help replace revenue lost under recent state legislative changes.
Matt Greller, president of Accelerate Indiana Municipalities, told the council the wheel tax is a strategic local tool now allowed for cities above 5,000 population and that state law makes the city eligible for a new lane‑miles/population distribution only when a local wheel tax is in place. “If you have it in place, you get the new distribution. If you don't, you don't get the new distribution,” Greller said.
Why it matters: Council members and staff framed the wheel tax as one of several local options to offset an estimated multi‑year decline in property-tax revenue tied to Senate Enrolled Act 1 (referred to in the meeting as Senate Bill 1). Staff…
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