Owning a vehicle in Munster is about to get more expensive.
The Munster Town Council approved on first reading
a wheel tax and surcharge on all types of motorized vehicles at its meeting Monday, with exceptions for state-owned vehicles, including school buses, or those operated by a religious or nonprofit youth organization.
"I'm not happy about this at all," Councilman David Nellans, R-4h, said. "We're backed into a corner."
Nellans said that with significant reductions from the state to fund road repairs, the town has struggled financially to maintain its streets over the past several years.
The town council voted 5-0 to pass the tax, which will be considered for adoption on second reading at its next meeting on June 20.
Munster is joining other Northwest Indiana communities, such as Portage, in enacting the tax to raise funds for local road maintenance. Crown Point, Valparaiso, Gary and Highland are also considering the tax.
Under a new state law, communities with a population greater than 10,000 in a county that does not levy a motor vehicle surtax and wheel tax can impose a tax at a local level.
The proposed tax works two ways, officials said. The surtax applies to passenger vehicles, motorcycles and trucks under a gross weight of 11,000 pounds. The maximum allowable tax is $25 per vehicle.
The wheel tax applies to buses, recreational vehicles, farm tractors, semitrailers and trucks, capped at $40 per vehicle.
Munster is seeking the maximum allowable tax under both vehicle classifications, which town officials estimate can raise more than $500,000 annually.
Town Manager Dustin Anderson presented an evaluation of Munster's roads based on the Indiana Department of Transportation's (INDOT) Technical Assistance Program Pavement Surface Evaluation Rating system. The report identifies more than $20 million in potential road maintenance work.
"The magnitude is great, but the roads in Munster are probably a little better than elsewhere," Anderson said, noting Munster's roads rank an average of 5 on a 10-point scale.
Councilman Joe Simonetto, R-3rd, added that he is concerned for senior citizens who may have difficultly affording the tax, which will be collected and disbursed through the Indiana Bureau of Motor Vehicles.
INDOT will make additional road funding will be available next year through an $186 million fund from which eligible Indiana towns can apply for up to a 50 percent matching grant based on what they collect from the surtax and wheel tax annually.
Originally Posted by Ron Paul
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