Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Hogsett administration testified Monday at the Indiana Statehouse in support of a wide-ranging road-funding bill that could lead to higher property taxes in Indianapolis.
The measure includes a provision to allow Marion County residents to vote, through a referendum, for property-tax hikes that would be used to pay for road improvements.
Rep. Jim Pressel, chair of the House Roads and Transportation Committee, authored House Bill 1461. He introduced the bill before the committee as a piece of legislation that gives local communities options for addressing road-funding gaps, while also attempting to address the state’s road-funding issues.
A report from the Local Technical Assistance Program at Purdue University estimated that the state would need to spend an additional $500 million annually to maintain current road conditions.
Lawmakers did not vote on the legislation Monday. Pressel told the committee that he would hear amendments next week.
Indianapolis officials have long decried the state’s road-funding formula, which is based on road miles rather than lane miles. For example, a one-lane, bidirectional country road receives the same funding as the widest portion of Keystone Avenue.
“We believe that the formulas and funding programs we all pay into should be economically allocated based on vehicle miles traveled, rather than on center-line mileage,” Dan Parker, chief of staff for Indianapolis Mayor Joe Hogsett, told the committee. “Put more succinctly, road funding should follow traffic.”
The nearly 40-page omnibus road-funding bill doesn’t make that change, which Parker told IBJ he would still like to see. However, he testified in favor of the bill and told reporters that there are positives in that the city’s multiyear push for change has materialized in a “serious conversation” and “Indianapolis-specific tools.”
The measure in the bill that could be most impactful in filling the gap Indy faces for road funding is a provision to allow the City-County Council to ask voters through a referendum whether an additional property tax should be used to pay for road-funding costs. Funds collected through the tax, if approved, would be used to pay off debt incurred through bonds.
Indianapolis has funded road improvements in recent years by issuing debt through the city’s Metropolitan Thoroughfare District. Former DPW Director Brandon Herget told a City-County Council committee last summer that this strategy could soon become irresponsible.
Parker called the referendum piece “an interesting new tool” but did not specify whether the Hogsett administration would utilize it.
According to the bill’s fiscal note, the referendum could only be held in a general election. It the referendum were held in 2026 and voters approved it, it would affect taxes in 2027.
The legislation also sets aside $60 million in the Community Crossings grant fund for cities and counties with a population more than 100,000. Currently, the Community Crossings grant program pays out a matching grant of up to $1 million.
However, the change would require that Indianapolis max out existing tax options—the county wheel tax and excise surtax. Parker said that is the “one piece we’re absolutely opposed to.”
“You’re asking our residents to pay more for a system that we feel is broken,” he said.
The current maximum rates for county wheel tax is $80 and for excise surtax is $50. The bill would triple the maximum levy for both taxes to $240 for wheel tax and $150 for excise surtax.
Indianapolis does not currently require residents to pay the highest possible rate. According to analysis from Indiana’s Legislative Serivces Agency, Indianapolis and Marion County have a combined $67 million left untapped from the two taxes.
Currently, the county collects approximately $14.4 million from county excise surtax and $1.1 million from county wheel tax each year.
Please enable JavaScript to view this content.
The reality is the state isn’t going to stop stealing road funding from Marion County any time soon. Nothing will change until the donut counties start experiencing the same issue.
Some of the donut counties are also complaining, especially Hamilton County.
Yet I don’t see their legislators doing anything about it either.
That legislators in the nine county area can’t band together – regardless of party – and work together to fix the formula for road funding … is just sad.
Amazingly politicians morph into “Indy Leaders” when the story fits the preset narrative.
Since funding is the issue, how are the streets around the taxpayer funded $73M new playpen for the Fever?
And on the subject of roads, looking forward to IBJ’s “reporting” on the street takeover Bill, I believe IN Senate Bill 13? Seems like that should pass with bipartisan support on day one of the session my guess is it won’t pass due to democrat opposition and the “journalists” will bury the story
Chuck, you talking about Freeman’s latest tantrum, SB 160?
“Prohibits, in a city with a population of at least 50,000, a governmental entity or private contractor from engaging in a project that would result in the permanent restriction or reduction of one or more travel lanes within the city as the result of the project. Provides that if a governmental entity or private contractor violates the prohibition, the state comptroller shall withhold 10% of the total amount of the distribution from the local road and street account that would have otherwise been distributed to the city during the calendar year following the calendar year in which the travel lanes became restricted or reduced. Provides that any distribution amount withheld by the state comptroller reverts to the state general fund. Exempts existing rapid transit lines from, and lists other exceptions to, the prohibition.”
If the city doesn’t have the money to maintain wide roads, and if the traffic volume isn’t there to support wide roads, forcing the city’s hand is … more of the same nonsense from Freeman. I’ve said it before and I will say it again – if Aaron Freeman wants to run Indianapolis, he should run for mayor.
https://iga.in.gov/legislative/2025/bills/senate/160/details
It should also be noted a similar bill was logged as SB 323.
https://iga.in.gov/legislative/2025/bills/senate/323/details
Think Chuck is referring to the bill that would make “spinning” and street takeovers a Class B misdemeanor. I agree that it should be a bipartisan issue, but Chuck shows that he is not in good faith by jumping ahead about 10 steps to the conclusion that there will be some sort of cover up.
Hi Chuck,
The IBJ doesn’t typically cover crime. That legislation aims to stop something we don’t write about, with few exceptions. However, it is listed on our bill tracker, which we update weekly.
Thank you.
Hey Chuck, taxpayers aren’t paying for the Fever “playpen” . Was anything you said after that accurate, or was it all made up?
Boss Hogsett and another boondoggle. Vote No!
Rather than do the right thing (change the state law that distributes road funds to all 92 counties to account for “lane miles”), a state legislator proposes that residents of Marion County have the right to increase taxes on themselves.
Don’t fall for it! It’s a cruel con where Marion County loses…and the legislature laughs all the way to re-election.
It’s also the only option on the table until the legislators who represent Marion County do something about it.
If Freeman showed the passion for better roads than he showed against IndyGo, maybe I’d think he was something besides an empty suit. I’ve driven the roads in his district, they stink.
https://indianacapitalchronicle.com/2025/01/28/indiana-lawmakers-turn-to-local-governments-in-quest-for-road-funding-boost/
I agree. I read it as Marion county residents would have a tax increase and funds already there for roads would be allocated to the state. Sounds like double dipping Marion County residents.
Joe, just because it’s the only option doesn’t make it a good one.
It’s another ploy by Republican state legislators to gig Marion County tax payers in the hopes of convincing them that the Democrats are messing them over.
The State needs to change the road funding formula. Indy’s roads, especially downtown are an embarrassment to all the out-of town visitors. The City’s many events contribute to the State economy and reputation.
Marion County ALONE accounts for 25% of the states GDP. (I think those are 2020 numbers). The 9 county area accounts for 50% of the states GDP.
Republicans have NO interest in making sure Marion County tax payers are happy. They are working hard to convince Marion Country taxpayers that Republicans could do a better job of running the county by screwing them over.
I have written for years regarding the ridiculous and disproportionate infrastructure state $’s earmarked for transportation in both rail and commercial trucking across northern Indiana leaving central Indiana with constant interstate upgrades falling on the taxpayer and endless commuter construction headaches. To the point. The I-70 corridor not only cuts through the heart of Indiana’s Capitol and largest city, but creates wear and tear, congestion and safety issues for trucks that have no intention of stopping in Indiana! In order to create new money that could legislatively be used for Marion county road upkeep, the State needs to construct a commercial trucking toll-road that begins just outside the county limits and redirects that MANDATORY flow of trucks a significant distance away from I-70 and downtown. Steady flow of income, safer conditions, money to fix potholes.
This is a fantastic idea.
How about tolls for semi traffic that drives through the interstates of downtown Indianapolis between the hours of 6-9a and 3-6p?
To my knowledge, I don’t think INDOT has ever studied the effect of tolling through trucks. At the last North Split public hearing I attended, I was told there is “no political stomach” for such a proposal. I suspect that if it got a serious look, we’d find out that some of that desired inner look expansion is unneeded.
But I also know that as incredible as it seems, 465 is under-built to handle diverting too much traffic off of the 65/70 inner loop.
Can Indy voters vote to actually retain all of the gasoline tax dollars collected in Marion County? That seems fair.