County staff outline wheel‑tax option and looming local income tax changes; estimates show revenue shifts

Paige, a county presenter, briefed the commissioners on the local vehicle registration excise and “wheel tax” options and provided a separate update on proposed state changes to local income tax distribution.

Regarding the wheel tax, Paige said the levy has two components: an excise component for smaller vehicles (passenger cars and trucks under 11,000 pounds) and a registration (wheel‑tax) component for larger vehicles. Using 2024 vehicle counts, she reported roughly 26,900 passenger‑type vehicles and 7,592 larger vehicles countywide. At maximum statutory rates ($25 for smaller vehicles and $40 for the larger class), Paige said the countywide revenue would be about $970,000, with the county unit’s share estimated at $817,004.88 after the statutorily mandated allocation among municipalities and the county. She said municipalities would receive distributions according to population and mileage formulas in the enabling statute.

Paige cautioned the commissioners that although recent proposed state legislation that would have required counties to adopt a wheel tax was struck, other legislation is still unsettled. She said the county would need to adopt the wheel tax by Sept. 1 to begin collections on Jan. 1 of the following year if they choose to do so.

On local income tax, Paige and staff described substantive changes proposed at the state level (referenced in a bill number discussed at the meeting). Paige said the Department of Local Government Finance was seeking cleanup language for House Bill 1427 and that provisions in the statewide reform could significantly change how certified shares and public‑safety distributions are handled. She presented county impact estimates prepared for 2026–2028: projected reductions in revenue compared with the current distribution model of about $537,000 in 2026, $705,000 in 2027 and $906,000 in 2028.

Paige offered options commissioners could consider to offset the changes, including county adoption of new local income tax elements under the proposed structure. She said that under one scenario a county services local income tax of 1.2% could generate about $9,000,002.65 (note: figure is the report’s modeled estimate for the county services levy under the new structure), but stressed the numbers depend on final state legislation and local decisions on which options to adopt.

Commissioners and staff discussed implementation logistics, exemptions (municipal, government, nonprofit vehicles), collection through the Bureau of Motor Vehicles and potential impacts on local employers and residents. Commissioners asked about trucking fleets and registration location; Paige and staff confirmed the wheel tax is assessed based on vehicle registration location. Several commissioners asked for more detailed estimates and for the presenter to return with refined revenue scenarios and municipal impact tables; Paige agreed to return with additional analysis if requested.