City of Plymouth adopts wheel tax to make up for loss of state funds, ensure upkeep of city roads
PLYMOUTH, Ind. -- Drivers in Plymouth will need to cough up a little more cash the next time they go to renew their vehicle registrations.
On Monday night, the Plymouth Common Council voted to implement a local wheel tax in order to help pay for future road improvement and maintenance projects, in reaction to a new state law that will strip funding opportunities.
Councilmembers don't love the idea of some city residents having to pay more taxes but said it needs to be done to make up for the major loss of state funding and to ensure the upkeep of city roads.
A newly paved stretch of South Michigan Street in downtown Plymouth is just one example of the type of projects that could cease to exist without a wheel tax.
"We just need to do what we have to do to continue the same types of services," explains Robert Listenberger, Mayor of the City of Plymouth.
In May, House Bill 1461 was signed into law which changed the game for how local transportation and infrastructure projects are funded throughout the state, namely, putting a lot more responsibility on local governments to secure their own funding.
Plymouth would stand to lose several hundred thousand dollars in their annual road maintenance budget.
"We had a good plan going forward, but that changed," explains Mayor Listenberger. "I'm about a year and half into this job, felt like I really had a control and kind of understanding, much better understanding I would say, then the game changed on us."
Drivers in Plymouth will feel the impact of the tax when it's time to renew their vehicle registration. It will be an extra $25 for a standard vehicle and $40 for commercial vehicles and heavier equipment.
It's all done to make sure the city can still pull funding from Community Crossroads Matching Grants, which has previously given 50/50 matches for road projects in Plymouth.
"It's not so much what this would generate in itself, it's just the state's way of saying 'Hey, do you want the full pot of money? You have to have the wheel tax in place,'" Mayor Listenberger says.
Even though the Community Crossing Grants themselves are seeing a hefty cut from $350 million available to be awarded statewide annually to just $100 million, it's still money that's up for grabs, but only for municipalities with the wheel tax.
"They realize exactly what money would be left on the table that we would not get from the wheel tax, and that's what it comes down to," says Mayor Listenberger.
He assures residents that 100% of the funds generated from the tax will go only towards road improvements.
In talking with Marshall County officials, he says the wheel tax is something they too will likely be looking to adopt next year, along with several other local municipalities.