04022016 - News Article - Portage to consider wheel tax to fund road improvements

Portage to consider wheel tax to fund road improvements
NWI Times
Apr 2, 2016
http://www.nwitimes.com/news/local/govt-and-politics/portage-to-consider-wheel-tax-to-fund-road-improvements/article_ca1fe554-841d-5217-94b4-55f1fb012bf7.html

PORTAGE — The Portage City Council will consider adopting a wheel/excise tax this week to fund local road projects.

An ordinance is scheduled for first reading at a meeting at 6:30 p.m. Tuesday at Woodland Park, 2100 Willowcreek Road.

If the ordinance passes, there will be a $25 charge per year for passenger vehicles, motorcycles, trucks not exceeding 11,000 pounds and motor driven cycles, and a $40 charge per year for buses, recreational vehicles, semitrailers, tractors, trailers and trucks registered in the city.

The tax will be collected by the Department of Motor Vehicles when a vehicle's registration is renewed and deposited in a city-created fund.

The ordinance must be passed by July for collection of the tax to begin Jan. 1, 2017.

The proposed wheel tax comes shortly after the city raised trash and sanitary sewer fees by a combined $15 per month.

In a press release, city officials stated state legislation is requiring the city to initiate the new tax in order to collect part of the $150 million set aside by the state as matching funds for communities.

Funds must be invested in city roads, sidewalks and the motor vehicle highway fund.

"This is the only state revenue source that every penny collected in Portage is not lost to state red tape. It all comes back to Portage roads, drainage and sidewalks. We believe every dollar invested by Portage residents will be returned in more state revenues, property value increases, road safety and vehicle maintenance," Mayor James Snyder said.

"While it's outrageous that the legislature is making us tax ourselves to simply get back our share of state road dollars, our roads are simply too important to forego the substantial state funds," Clerk-Treasurer Chris Stidham saide.

It is estimated the city would receive $750,000 in state funds.