Evansville Plans Wheel Tax to Fund Road Repairs

Evansville city officials have proposed a new "wheel tax" initiative called "Paving the Way" to address the city's long-standing road infrastructure problems and secure stable funding for repairs. The tax would charge most vehicle owners $25 annually, $15 for motorcycles, and $35 for heavy trucks, collected during vehicle registration renewal starting in 2026. This move responds to projected losses in property tax revenue due to recent state legislation and is required to qualify for additional state funding through Lane Mile Distribution Dollars. Officials estimate the tax could generate approximately $2.7 million annually, which will be strictly used for road and street improvements such as resurfacing and sidewalk upgrades. The city needs at least $12 million annually to prevent further road deterioration and up to $20 million for full restoration, highlighting the gap between current funding and infrastructure needs. Mayor Stephanie Terry emphasized the necessity of the tax to maintain and improve Evansville's roads despite the difficulty of introducing a new tax.