Noblesville to consider wheel tax, excise surcharge

By JEFF JELLISON

Reporter Publisher 

At Tuesday’s Noblesville Common Council meeting, Deputy Mayor Matt Light introduced two proposed ordinances that will increase vehicle registration fees in the City of Noblesville.

Light presented to the council a proposal that would implement a Motor Vehicle Wheel Tax and an Excise Surcharge for all vehicles registered within the city limits.

Light

Light said the taxes are the first significant financial steps the council would take regarding the funding of the Pleasant Street Project.

The Pleasant Street Project is expected to exceed $113.5 million in cost and serve as a bypass around downtown Noblesville, with an expected result of a 24 percent reduction in traffic on State Road 32 through the downtown area.

Light said the Pleasant Street Project is Mayor Jensen’s number one road infrastructure priority, and the passing of the fees are critical in terms of moving the financial funding strategies forward.

“We’ve looked at a number of different strategies and options for funding this project,” Light said. “A new user fee or excise surtax isn’t something we undertake lightly, but we think it is an appropriate component to the overall funding strategy for this very important project for Noblesville.”

Mayor Chris Jensen told the Reporter the Wheel Tax and Excise Surcharge could be used for any road construction project; however, the funds would be specifically earmarked for the Pleasant Street Project.

Jensen

“We are projecting it to generate approximately $1.8 million per year, or an estimated $30 million over a 20-year funding plan,” Jensen said.

According to Light, 12 cities throughout the state have implemented a wheel tax and excise surcharge, including Fishers.

If approved by the council, the taxes would begin being collected in 2022 with each individual’s registration renewal.

Jensen said the first opportunity for the council to vote on the proposal would by May 25, and the public would have an opportunity to comment prior to the vote.

According to the ordinance, the following vehicles registered in the City of Noblesville will be subject to the Motor Vehicle License Excise Tax Surtax in the amount of $25:

• Passenger motor vehicles
• Motorcycles
• Motor driven cycles
• Collector vehicles
• Trailer vehicles with a declared gross weight of 9,000 pounds or less
• Trucks with a declared gross weight of 11,000 pounds or less
• Mini-trucks
• Military vehicles

In addition, the following vehicles will be subject to a Wheel Tax of $40:

• Buses
• Recreational vehicles
• Semitrailers
• Trailers with a declared gross weight of more than 9,000 pounds
• Trucks and tractors with a declared gross weight of more than 11,000 pounds

Vehicles exempt from the Wheel Tax are vehicles (1) owned by the state, (2) owned by a state agency of the state, (3) owned by a political subdivision of the state, (4) subject to the municipal vehicle excise tax imposed under Ind. Code 6-3.5-10, (5) a bus owned or operated by a religious or nonprofit youth organization and used to transport persons to religious services or for the benefit of its members, (6) a school bus, (7) a motor vehicle that is funeral equipment and that is used in the operation of funeral services (as defined in Ind. Code 25-15-2-17), or (8) any other vehicle exempt pursuant to Ind. Code 6-3.5-11-4.

Additional information for the Pleasant Street Project can be found at ReimaginePleasantSt.com.