Highland council reviews proposed wheel tax and motor vehicle surtax; attorneys to revise draft

The Highland Town Council spent substantial time July 6 reviewing a draft ordinance (No. 1853) that would add a municipal motor vehicle excise surtax and a municipal wheel tax to raise local road-maintenance funds.

Attorney Reed, who presented the draft, said the changes in the most recent version were modest and would not dramatically alter projected revenue. "The changes he made are relatively negligible on the effect on income generated," the attorney said. The draft lists surtax rates of $25 for passenger vehicles and $10 for motorcycles, and wheel tax rates ranging from $10 for trailers to $40 for buses, semitrailers and tractors; trucks under 11,000 pounds would be $25.

Councilors raised potential local impacts. Councilor George Georgeff said some larger local haulers might re-register equipment out of town if the wheel tax is set too high, and urged considering a lower rate for semitrailers or a phased approach. Councilor Alex Robertson pressed for clarity on whether separate accounting or funds would be required to track a surtax intended to meet the match for the state Community Crossing Grant.

Attorney Reed agreed to revise the draft to reflect the council's feedback, including adding an exemption or reduced rate for handicapped plates if the council wants it and researching whether a separate surtax fund is required by statute. He also summarized options for a sunset clause tied to the Community Crossing Grant and said the revised ordinance and explanatory materials will be redistributed for further review before adoption.

The council did not vote on the ordinance at the study session; Attorney Reed recommended additional review and possible adoption at a later plenary meeting.