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Home My WebLink AboutD-2738-24 Wheel Tax Ordinance w ExhibitSPONSOR(S): Green and Aasen This Ordinance was prepared by Samantha Karn, Corporation Counsel, on September 5, 2024 at 12:10 p.m. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise. ORDINANCE D-2738-24 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA CREATING THE CARMEL WHEEL TAX FUND AND IMPOSING A MUNICIPAL WHEEL TAX Synopsis: Creates the Carmel Wheel Tax Fund and Imposes a Municipal Wheel Tax. WHEREAS, Ind. Code §6-3.5-11 et seq. (the “Act”) authorizes the City of Carmel Common Council (the “Council”) to impose, by ordinance, an annual wheel tax Wheel Tax”) of not more than forty dollars ($40.00) on certain motor vehicles registered in the City of Carmel (“City”); WHEREAS, the Act authorizes the Council to impose the Wheel Tax at a different rate for each class of vehicle subject to the Act. In addition, the Act authorizes the Council to establish different rates within the classes of busses, recreational vehicles, semitrailers, trailers, tractors, and trucks based on weight classifications established by the Indiana Bureau of Motor Vehicles (“BMV”); WHEREAS, the Act prohibits the Council from adopting an ordinance imposing a Wheel Tax unless the City Council concurrently adopts an ordinance under Ind. Code 6-3.5-10-1 et seq. to impose the annual motor vehicle license excise surtax; WHEREAS, pursuant to Ind. Code §6-3.5-10-1 et seq., the Council is concurrently adopting a Motor Vehicle License Excise Surtax; WHEREAS, the Council may not adopt an ordinance to impose the Wheel Tax unless the City uses a transportation asset management plan approved by the Indiana Department of Transportation (“INDOT”); WHEREAS, the City utilizes a transportation asset management plan approved by INDOT, as more specifically described in Exhibit A, attached hereto and incorporated herein; and WHEREAS, the City may use the Wheel Tax revenues: 1) to construct, reconstruct, repair, or maintain streets and roads under the City's jurisdiction; 2) as a contribution to an authority established under Ind. Code §36-7-23; or 3) for the city's contribution toward a grant from the local road and bridge matching grant fund under Ind. Code §8-23-30. NOW, THEREFORE, BE IT ORDAINED, by the Common Council of the City of Carmel, Indiana, as follows: Section 1. Section Chapter 2, Article 7, Section 2-403 shall be created and added to the Carmel Code of Ordinances as follows: a) Definitions. The definitions and provisions set forth in Ind. Code 6-3.5-11-1 are incorporated herein and shall apply throughout this ordinance. b) Imposition and Rate of Wheel Tax. Effective January 1, 2025, the following vehicles, registered in the City and subject to the Wheel Tax shall be subject to a Wheel Tax in the amount of Forty Dollars ($40.00), in accordance with the provisions of the Ind. Code §6-3.5-11-1 et seq. The Wheel Tax shall be paid to the Indiana Bureau of Motor Vehicles each year at the time the vehicle is registered. The City’s Controller shall deposit the Wheel Tax revenues in a fund to be known as the Carmel Wheel Tax Fund” and shall distribute the Carmel Wheel Tax Fund in accordance with Ind. Code §6-3.5-11-1 et seq. Ordinance D-2738-24 Page One of Three Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E SPONSOR(S): Green and Aasen This Ordinance was prepared by Samantha Karn, Corporation Counsel, on September 5, 2024 at 12:10 p.m. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise. 1) Buses. 2) Recreational vehicles. 3) Semitrailers. 4) Trailers with a declared gross weight of more than nine thousand 9,000) pounds. 5) Trucks and tractors with a declared gross weight of more than eleven thousand (11,000) pounds. Vehicles exempt from the Wheel Tax are vehicles: 1) owned by the state, 2) owned by a state agency of the state, 3) owned by a political subdivision of the state, 4) subject to the municipal vehicle excise tax imposed under Ind. Code 6-3.5-10, 5) a bus owned or operated by a religious or nonprofit youth organization and used to transport persons to religious services or for the benefit of its members, 6) a school bus, 7) a motor vehicle that is funeral equipment and that is used in the operation of funeral services (as defined in Ind. Code §25-15-2- 17), or (8) any other vehicle exempt pursuant to Ind. Code §6-3.5-11-4. c) Carmel Wheel Tax Fund. The “Carmel Wheel Tax Fund” is hereby created and shall be a non-reverting fund. The City may only use the Wheel Tax revenues to: 1) construct, reconstruct, repair, or maintain streets and roads under the City’s jurisdiction; 2) as a contribution to an authority established under Ind. Code §36- 7-23; 3) for the City’s contribution to obtain a grant from the local road and bridge matching grant fund under Ind. Code §8-23-30 or (4) or any other use allowable under Ind. Code §6-3.5- 11-14. d) Estimate of Anticipated Wheel Tax Revenues. On or before October 1 of each year, the City Controller shall provide the City Council with an estimate of the Wheel Tax revenues to be received by the City during the next calendar year. The City shall include the estimated Wheel Tax revenues in the City’s budget estimate for the calendar year. e) Transmittal of Ordinance. The Council hereby authorizes the Mayor or her designee to provide a copy of the ordinance to the Indiana Bureau of Motor Vehicles and the Department of State Revenue as required by Ind. Code §6-3.5-11-8.” Section 2. The foregoing Recitals are incorporated herein by this reference. Section 3. Chapter 2, Article 7, Section 2-403 of the Carmel City Code is hereby added. Section 4. If any portion of this Ordinance is for any reason declared to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance so long as enforcement of same can be given the same effect. Section 5. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Ordinance D-2738-24 Page Two of Three Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E SPONSOR(S): Green and Aasen This Ordinance was prepared by Samantha Karn, Corporation Counsel, on September 5, 2024 at 12:10 p.m. No subsequent revision to this Ordinance has been reviewed by Ms. Karn for legal sufficiency or otherwise. PASSED, by the Common Council of the City of Carmel, Indiana, this day of 2024, by a vote of ayes and nays. COMMON COUNCIL FOR THE CITY OF CARMEL Anthony Green, President Adam Aasen, Vice-President Rich Taylor Matthew Snyder Jeff Worrell Teresa Ayers Shannon Minnaar Ryan Locke Anita Joshi ATTEST: Jacob Quinn, Clerk Presented by me to the Mayor of the City of Carmel, Indiana this day of 2024, at __________ ___. M. Jacob Quinn, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this day of 2024, at __________ ___. M. Sue Finkam, Mayor ATTEST: Jacob Quinn, Clerk Ordinance No. D-2738-24 Page Three of Three Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E October Opposed 11:30 27 21st 22nd October A Opposed 11:15 A October 22nd Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E Docusign Envelope ID: B53FB292-BE7B-4480-AA1E-62876274BE7E