Council increases vehicle license excise surtax, wheel tax

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June 10, 2009

By Doug Rapp, Staff Writer The Washington Times-Herald Wed Jun 10, 2009, 10:12 PM EDT

The Daviess County Council passed an ordinance at its Wednesday meeting raising the annual vehicle license excise surtax to 10 percent and increasing the wheel tax $5 across the board. These rates hadn’t been increased since 1989, according to the ordinance.

County Highway Supervisor Larry McLin gave the council members a copy of a memo on the increases.

“The county highway’s income from the fuel tax has dwindled from $2.5 million in 2004 to $2.2 million in 2008,” McLin wrote in the memo. “That is an 11 percent cut when blacktop went from $30 per ton to $57 per ton and we all know what happened to the price of gasoline and diesel fuel...We only have a limited number of tools to generate money to insure that our residents don’t have to dodge potholes and are able to traverse our gravel roads. I feel the (state) Legislature will not increase the fuel tax and the message is clear that we must fund our shortfalls locally. The surtax and wheel tax is 20 years old and we have never increased the rates. If we increase the rates, we can qualify for an interest-free loan of up to $1 million with 10 years to pay it back. The loan can be used to fund construction projects and could be used to match the federal aid funds necessary to improve Cannelburg Road.”

After the meeting, McLin said he thought the council would approve the increase.

“I told them we need more money,” he said.

In his memo, McLin wrote that the highway department received $278,029 from the wheel tax and surtax. McLin estimated the increase, effective Jan. 1, 2010, would generate up to $200,000 more for the highway department. He said the money would help with the Cannelburg Road project, which is aimed at widening that road to 40 feet with buggy paths on both sides.

In other business

Property tax

system

Gary Malone, a certified public accountant with Umbaugh & Associates of Indianapolis, addressed the council about the restructuring of Indiana’s property tax system and how it will affect Daviess County. He presented the council members with a proposal for financial advisory services. The council will decide whether to utilize Umbaugh for tax consultation.

Resolution

At the request of county commissioner President Tony Wichman, the council signed a resolution supporting the building of an I-69 interchange in northern Pike County. Wichman said the interchange would reduce commercial truck traffic on SR 57.

Tax-exempt bond financing

The council approved a preliminary resolution for tax-exempt bond financing for Parkview Village Christian Care, Inc., Odon.

Adult protection services

The council approved paying for the prosecutor’s office’s adult protection services out of the county fund next year.

Transfers

The council approved the transfer of $15,325 from wages and $1,172.36 from social security to provide water patrol at West Boggs Park, as requested by sheriff Steve Cox. The council also approved the transfer of $1,713 from furniture to office supplies for the circuit court.

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