PLYMOUTH — At Monday night’s Plymouth Common Council meeting, an ordinance — Ordinance No. 2025-2247 — that would establish a municipal wheel tax for the city was heard on first reading. As usual with a first reading, no action on the ordinance was taken and there was also no discussion.
In a press release on the matter, Plymouth Mayor Robert Listenberger says that the ordinance is a reaction to Indiana House Bill 1461, just passed by the legislature, along with other changes in state funding for infrastructure.
Other Marshall County government entities have also had similar discussions recently regarding the Indiana Assembly’s message that communities with such local taxes in place will see preferential treatment for state infrastructure grants.
“Plymouth’s streets are more than a convenience; they are essential for public safety, economic development, and quality of life,” said Listenberger in the release. “Our ability to fund local street maintenance and improvement projects depends heavily on state support.”
“The State of Indiana has historically returned tax dollars to local governments, helping to cover the costs of repairing potholes, resurfacing streets, replacing signage, and upgrading critical infrastructure. However, this model of state funding is changing, placing more responsibility on local jurisdictions like Plymouth to identify and secure their own street funding solutions.”
This year’s passage of House Bill 1461 altered the way transportation and infrastructure projects are funded throughout the state. The bill shifts a greater share of responsibility for street maintenance and improvements from the state level to cities and counties. Specifically, House Bill 1461 restructures the distribution formula for state highway funds, resulting in reduced allocations for many mid-sized and smaller communities such as Plymouth.
Under this new law, state contributions to local street projects have been recalibrated to focus more on regional priorities and high-traffic corridors, often at the expense of smaller cities and rural areas.
In addition, many municipalities will need to decide whether to pass a local wheel tax to continue receiving the most benefit from Community Crossings Matching Grants. The immediate impact of House Bill 1461 on Plymouth is a projected shortfall of several hundred thousand dollars in our annual road maintenance budget.
The wheel tax to be considered by the Plymouth Council would apply to vehicles registered in Plymouth, including passenger vehicles, trucks, motorcycles, and trailers. By law, the revenue generated would be earmarked strictly for transportation infrastructure; those funds could not be diverted to other purposes. The tax rate will be carefully calibrated based on vehicle type and reviewed annually to ensure fairness and adequacy.
“Plymouth stands at a crossroads. The shift in state funding brought about by Indiana House Bill 1461 means that our community must take new steps to maintain and improve the streets we all rely on,” said Listenberger. “I urge all residents to stay informed and engaged as we move forward with this important decision. Working together, we can continue to build a brighter future for Plymouth.”
Listenberger encouraged the citizen’s of Plymouth to reach out to his office with questions or comments at (574) 936-6717 or email mayor@plymouthin.gov.
