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Avon council approves municipal wheel tax and surtax ordinance
Summary
After staff recommended the maximum wheel tax and surtax to improve road funding and qualify for state matching, the Avon Town Council approved the ordinance; two council members voted against the measure.
The Avon Town Council approved an ordinance to implement a municipal wheel tax and a surtax, establishing new local charges that will be collected through the Bureau of Motor Vehicles and placed in dedicated road funds.
The ordinance, presented on second reading, sets the local wheel tax at $40 per vehicle and the local surtax at $25 per vehicle (the ordinance uses the statutory maximums). Staff and financial advisor Greg told council members the recommendation reflects both local road needs and the likelihood that state grant programs may favor applicants with higher local wheel tax rates when awarding matching funds.
Council action and vote The ordinance passed on final reading. The roll‑call vote as recorded in the meeting transcript produced a majority in favor and two council members opposed; staff tallied the measure for final transmittal to the Bureau of Motor Vehicles so collection can begin if the state processes the town's filing.
Why it matters Town staff argued the wheel tax will provide a predictable local revenue stream dedicated to streets and will strengthen applications for state matching grants such as Community Crossings. Opponents raised concern about adding costs to residents’ annual vehicle registration and asked whether a lower surtax would soften the impact while still securing grant eligibility.
Implementation notes Staff proposed a conservative budget estimate of $400,000 in wheel tax revenue for planning; the actual revenue will depend on registration patterns and BMV allocations. The ordinance also creates two new funds — one for wheel tax receipts and one for the surtax — and staff warned council to budget carefully until the town receives actual receipts.
Ending The ordinance was adopted and staff will submit the required filings to the Bureau of Motor Vehicles and begin budgeting for wheel‑tax revenues in the 2026 plan.
