Greenwood Considers New Wheel and Vehicle Excise Tax

GREENWOOD, Ind. — The city of Greenwood is considering implementing a wheel and vehicle excise tax.

Cars registered in Greenwood would have to pay $25 annually. Those who own a bus, semi, or RV would have to pay $40 a year.

The city said they plan to use the revenue for road repair projects, as changes to property and income taxes make funding road work more challenging. Greg Wright, controller for the city of Greenwood, told FOX 59 that they don’t want to fall behind on road work and then have to pay more down the line.

“We’ve been hearing lately through the grapevine that there will be more changes to road funding coming, and that we’re going to have to have one if we want to participate in some of the road funding grants through the state,” said Wright.

The city receives $1.5 million annually from the state through Community Crossing Grants that they need to match.

“We’re anticipating that it will become a requirement of that program to have a municipal wheel tax to get the Community Crossings Grants,” Wright said.

The city council passed the ordinance on first reading during their meeting on Monday. A second reading was delayed until next month’s meeting.

If approved, the ordinance in Greenwood will take effect starting in 2027.

This consideration from the city in Johnson County comes after the Indianapolis City-County Council approved changes to vehicle fees in Marion County. Starting next year, most people who live and drive there will pay a $100 registration fee annually.

According to the Indy City-County Council, the changes will result in about $356 million being raised over the next five years for road improvements in Marion County.

Greenwood Considers New Wheel and Vehicle Excise Tax was originally published on wibc.com