Evansville Approves Wheel Tax Raising $2.2M for Road Repairs

The Evansville City Council approved a new wheel tax with an 8-1 vote, lowering the originally proposed amounts to $20 per passenger vehicle, $10 for motorcycles, and $30 for heavy trucks, expected to generate about $2.2 million annually for road improvements. This tax is in response to state legislation requiring municipalities to adopt wheel taxes to qualify for certain state grants, especially after state laws are reducing local government revenues significantly. The tax will take effect on January 1, 2026, with funds earmarked solely for street resurfacing, sidewalk upgrades, and curb work, and a prioritized list of street improvements will be released before implementation. Meanwhile, Tell City tabled its wheel tax proposal to explore alternative funding methods and legislative solutions to avoid additional taxes on residents. In Kewanee, a recent change in state law now allows the city council to add a 0.5% sales tax for street repairs without voter approval, potentially raising $860,000 annually, contingent on a public plan detailing street repair priorities. These developments reflect a broader trend among local governments seeking new revenue streams for infrastructure amid shifting state funding landscapes.