(La Porte County, IN) - A proposal to impose a wheel tax in La Porte County to help make up for government revenue declines has been defeated.
The La Porte County Council on Monday, August 24 voted 4-3 against a wheel tax of $7.50 on each passenger vehicle and $5 for every motorcycle on residents living in the unincorporated areas.
Originally, the proposed fee was $25 per vehicle and $15 per motorcycle but it was lowered by supporters to try and gain majority support.
Council President Adam Koronka said the decision reflects the wishes of the many citizens who expressed concern about a new tax in addition to a higher local income tax imposed a few years ago to help fund police and other emergency services.
About $500,000 a year would have been generated by the wheel tax for roads.
The decision also means county government losing more than $3 million in guaranteed road monies from the state over the next two years because only local governments adopting a wheel tax have access to that funding.
Koronka, who voted for the wheel tax, said the decision also shows how the spending of tax dollars is taken seriously by members of the governing body.
“It should provide some confidence to the voters that we’re doing to the best of our ability to both provide services and represent their concerns,” he said.
Local governments throughout Indiana are considering wheel taxes and other forms of local taxation to make up for revenue declines caused by statewide property tax reform.
Koronka said a wheel tax could be considered again next year.
In the coming weeks, though, the council will begin examining the possibility of imposing another local income tax to help fund the county government operated ambulance service.
Right now, how much the proposed tax would be hasn’t been decided but Koronka expects a decision on that proposal sometime in September or October. He anticipates another close vote.
“The residents of La Porte County put us in a position like this not to just skate by without any hard decisions or considerations. We’re here to be a diverse group of problem solvers that represent those who put us in office and each and every one of us do to the best of our ability to represent those values,” he said.
