City staff and the city attorney introduced Ordinance 2025‑1906 on Nov. 24, proposing a local wheel tax and a motor vehicle license excise surtax following recent state legislation that permits such local levies. The ordinance contemplates two fee tiers: $25 for traditional passenger cars, trucks and vans, and $40 for RVs, buses and semi‑trailers.

Staff estimated that if the city adopts the levy and it takes effect, Martinsville could receive $250,000 to $300,000 annually. The city attorney and finance staff cautioned they would confirm whether the local measure is an additional local tax or is implemented as a shift from state collections and asked the city attorney (Mister Coffey) to provide statutory clarification at a later meeting.

Council members also discussed the eligible uses for the revenue (infrastructure and transportation projects tied to vehicle use), the timing for revenue (revenues would not be received until 2027 if passed this year) and recommended creating a restricted fund to spend proceeds on paving and sidewalks. Several members requested more written legal guidance before any final reading.

Why it matters: The wheel tax would provide a new revenue stream dedicated to transportation needs but may alter the city's revenue mix and requires clear legal authority and public notice before adoption.

What happens next: This ordinance was presented for first reading; staff will return with additional legal detail and the city attorney will follow up on the statutory mechanics and eligible expenditures.

Quote: "If you passed it this year, you would not receive it until 2027, but our projection is right at $250,000 to $300,000 annually," a staff member said.