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Franklin City Council adopts wheel tax ordinance as state law change alters grant eligibility
Summary
The Franklin City Council on May 5 adopted Ordinance 25-04 imposing a municipal wheel tax and a motor vehicle license excise surtax, after City Attorney Lynn Gray warned changes in state legislation could cut the city out of Metropolitan Planning Organization (MPO) road funding and cost the city about $600,000.
FRANKLIN, Ind. — The Franklin City Council adopted Ordinance 25-04 on May 5, imposing a municipal wheel tax and a motor vehicle license excise surtax to create a Franklin Wheel Tax Fund and a Franklin Motor Vehicle License Excise Surtax Fund.
City Attorney Lynn Gray told the council that recent changes in state legislation altered earlier assumptions about how county and municipal wheel taxes would interact and warned the city risks losing state-administered road funding if it does not adopt a municipal tax. "If we do not have one, we are undoubtedly not able to apply for the MPO money that's over the $100,000,000," Gray said during the council discussion.
Gray said the version of the state bill the council considered when Ordinance 25-04 was first…
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