Council advances municipal wheel tax in first reading after finance briefing

The Logansport Common Council advanced an ordinance to impose a municipal wheel tax on its first reading and amended the draft to include a fund number for the municipal wheel tax fund.

At a finance committee briefing earlier in the evening, a staff presenter explained the proposed wheel tax effectively combines two separate fees and noted the proposal raises several vehicle-fee lines (many to $40), which would roughly double anticipated revenue for the city’s motor-vehicle restricted fund. A council member asked about the timetable; a committee member replied, “So this doesn't begin for us until 2027,” and a staff presenter added the state’s first direct distribution from the new allocation is currently scheduled for June 2027.

During the council meeting, Councilman Morris moved and council members amended Ordinance 20-26-17 to add a fund number (467/4670) for the municipal wheel tax fund; the amendment passed and the ordinance passed its first reading. The ordinance will return for subsequent readings before final adoption.

Why it matters: the wheel tax would create a dedicated municipal fund and change fees charged on motor vehicles, producing revenue the council said would support road funding and leverage additional grants.

What remains: the ordinance passed only its first reading; council members did not adopt final rates tonight and the measure will come back for further readings and a final vote.

Sources: council discussion and finance committee briefing; staff noted the first state distribution is scheduled for June 2027.