Huntington County Council approves wheel tax which could bring $486,000 for roads

Council voted unanimously 5-0 on approving the tax.

The tax will be effective Jan. 1, 2016.

LOHUT is actually two separate taxes in an excise and wheel tax. The vehicle excise tax is $15 per year paid at registration and includes automobiles, motorcycles and trucks weighing less than 11,000 pounds. The wheel tax would be $15 for vehicles weighing less than 30,000 pounds and $30 for those above that limit. The wheel tax includes vehicles not subject to the excise tax, which Hostetler explained are buses, recreational vehicles, semi trailers, tractor-trailers and trucks.

Several vehicles are not subject to the wheel tax, including vehicles owned by the state or political subdivisions, those subject to the excise tax and buses used by religious or nonprofit youth organizations.

In terms of why the county would need the tax Hostetler explained that what his department is receiving has been shrinking.

“Basically all the money that goes into the highway fund comes from the gas tax,” Hostetler explained. He said that in the past eight years the nominal value of funds received for the gas tax every year has decreased nearly $500,000, citing more fuel-efficient vehicles and people generally driving less as reasons.

Based on registration close to 36,000 vehicles in the county would be subject to the excise tax and about 6,500 subject to the wheel tax.

Hostetler presented a general funding overview up until 2020, which with the projected costs per year and funding received would lead to a county highway department shortfall of about $3 million by the end of that year.

With the implementation of a LOHUT the county would receive roughly $486,000 more funds every year, which would lead to a surplus in 2020 given another winter like the past two did not occur.

Before Hostetler spoke two members of the public came forth to speak during the public hearing for the tax. Larry Zahm voiced his concern on having another tax while Robert Miller addressed council with his own concerns on tacking on another drain on county families’ funds.

“Working families in Huntington need every penny that they can get. A significant majority of our citizens here live paycheck to paycheck,” Miller said. His suggestion was to tighten the current budget rather than adding another tax.

Huntington County Council Member Todd Landrum, R-Dist. 1, expressed his concerns with the state of county roads and its funding.

“You don’t have to drive very far in the county to see the condition we’re under,” Landrum said. “We’ve neglected $3 million for seven, eight years of money. The state keeps cutting (funds); you have got to find some money somewhere.”

“I don’t like taxing more than anybody else does,” Landrum remarked, warning that if the county has another damaging winter the costs are only going to go up.

Council member Don Davenriner, R-Dist. 4, mentioned that safety should be another concern for looking at ways to increase highway funding.

“On some of these county roads if you come out on a spot, if you’re not careful you’re going to not be on the road,” he remarked.