Floyd County may consider wheel tax as it faces road funding challenges amid tax reform

FLOYD COUNTY, Ind. (WDRB) — The Blackiston Mill project has cost Floyd County a significant amount of money, and recent changes to how Indiana counties collect revenue mean the county's approach to funding road repairs and maintenance is about to change as well.

Residents and officials alike have noticed the toll that budget constraints are taking on the county’s infrastructure.

“Roads are horrible around Floyd County. Everywhere you go, they're doing construction. Potholes here and there," local resident Robert Gouldy said. "Cutouts in the road that they've just left open for you to run over and just destroy your tires."

The county road department is running low on funds and has also faced unexpected expenses, including costly equipment repairs.

“We had some equipment issues that needed to repair some bills that they needed to pay for,” Danny Short, Floyd County Council president, said about the financial strain the department is under.

State lawmakers recently passed sweeping tax reform legislation, aiming to provide property tax relief. However, the changes have shifted the financial burden back onto counties, causing many officials statewide to scramble to balance their budgets.

“I think their goal was property tax relief. And we can argue whether they actually did that or not. But with giving the property tax relief, they put the onus back on the counties to make up the difference in revenue," Short said. "So in the end, is it a wash? You know, is it really a savings? It’s out of one pocket or the other.”

One option being discussed is the implementation of a “wheel tax” — a vehicle registration fee collected by the Indiana Bureau of Motor Vehicles and distributed back to counties. Floyd County is currently one of 13 counties in Indiana without a wheel tax.

Short noted the pressures facing counties.

“Indiana's one of the lowest tax states in the union. This bill just puts more pressure on the counties to put these types of things into effect,” he said.

The wheel tax typically charges $25 per car, with higher rates for trucks, buses, and recreational vehicles. To qualify for certain state funding, counties must have a wheel tax in place.

Despite concerns, some residents are willing to pay more for better roads.

“I think I would,” said Gouldy, when asked if he would support a wheel tax for improved infrastructure.

If approved by the county council by the end of this month, the wheel tax would take effect and begin collecting revenue next year.

Floyd County officials stress that the decision will be made with the community’s best interests in mind, balancing tax relief with the need for safe and well-maintained roads.

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