No Amendment To Wheel Tax
An ordinance to amend the wheel tax did not have enough support from Kosciusko County Council members to be enacted.
The council has been discussing amending the wheel tax for most of 2015. It voted to introduce an amendment ordinance at its April meeting which would reduce taxes on smaller trailers. Last month, the ordinance came before the council but – not getting a unanimous vote – the ordinance did not pass.
At the June 11 meeting, the ordinance came before the council again with much discussion on the wheel tax. Council President Robert Sanders reported that year-to-date the county had collected $1,134,000 from the wheel tax.
When the council first considered the wheel tax in 2014, financial consultants Umbaugh and Associates projected the tax would bring in $2.77 million annually. Without amending the wheel tax, the county would still come up short of Umbaugh’s projection. Furthermore, Sanders reports there’s no funding in the general fund for the Kosciusko County Highway Department.
“Robbing Peter to pay Paul is not working any longer,” Sanders said.
Sanders went on to report the highway department received 27 percent less funding from the state than it did last year. Additionally, the highway department has already spent more money on road maintenance in 2015 than it did for the entire year of 2014.
“Where are we going to get this money if we decide this tax is not fair for people with trailers?” said Sanders. “I want fairness, but lets stop and think about this county. It’s our job to make sure this county is kept in a condition that’s safe.” He urged the council to consider school buses, tourists and businesses that are considering Kosciusko County. He also noted that the $40 per year tax equates to seven cents a week. Sanders then opened the floor to the public.
Most of people who addressed the council did not support amending the wheel tax. Kosciusko Chamber of Commerce President and CEO Mark Dobson, representing his organization, said the chamber supports retaining the rate. Kosciusko Economic Development Corporation President George Robertson also spoke.
“We have a great highway network, now you notice I didn’t say ‘great roads,’” Robertson said. “The arteries of our economy are our highways and roads…Figure out how to make it revenue neutral.”
Brett Harter, president of BAKFC, said, “We’re in support of the wheel tax as you guys have it.” Several private citizens also spoke. Jim Newcombe, Leesburg, presented the council with a one-page letter, where he noted the cost of trailer registration is equivalent to 3-5 gallons of gas at the local marina.
Upon closing the public hearing, Sanders offered each council member a chance to speak on the amendment. Jim Moyer said, “I’m not comfortable reducing at this time.” Doug Heinisch wanted to give the original wheel tax more time. Brad Tandy said he struggled with the decision but doesn’t want to change the wheel tax this year.
Jon Garber prepared a two-page letter which closed with the following: “Knowing that safe and well maintained roads is of high importance to the citizens of this county, I am not going to make that job harder for our county highway department by potentially reducing available funds. However, there is a clause in the ordinance that states ‘Furthermore, in the event that another source for road maintenance revenue equal to or greater than that provide under this ordinance is made available, then this ordinance may be rescinded, subject to the act.’ Rest assured, I’ll be one of the first in line calling for such action.”
Councilmen Larry Teghtmeyer and Jon Fussle both wanted to amend the wheel tax and seek alternative funding. “There is an equitable solution to this, and it’s not here in the county,” stated Fussle. “It’s down at state.”
Teghtmeyer made a motion to adopt the ordinance, Fussle seconded. They were the only two votes for the amendment; the other four councilmen voted against.
“We will come back to this in May of next year,” said Sanders in closing, noting that amendments would be made as necessary.