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Wheel tax, income tax boost likely for Porter County as burden of government support shifts
Wheel tax, income tax boost likely for Porter County as burden of government support shifts

Chicago Tribune

time25-06-2025

  • Business
  • Chicago Tribune

Wheel tax, income tax boost likely for Porter County as burden of government support shifts

Discussion of the impact of property tax reforms passed by the Indiana General Assembly taxed Porter County Council members' brains Tuesday. 'Understand that nobody up here wants to pass an increase in taxes,' Council President Andy Vasquez, R-4th, said. 'We're stuck between a rock and a hard place.' Putting local government on a property tax diet, something Gov. Mike Braun strongly urged the Legislature to do, leaves two choices: Reduce services or raise income taxes and other taxes to make up the difference. 'We're getting pushed from property taxes to local income taxes,' said consultant Jason Semler, a principal for Baker Tilly Municipal Advisors, as he walked the council through the long, complicated math of the new state law. The result ends up shifting more of the burden of financing local government from businesses to individuals, Semler said. A wheel tax for Porter County is virtually a certainty as a way to get the full amount available in the state's Community Crossings matching grant program. Technically, the wheel tax remains optional, but the new law requires it for the county to receive the full amount of matching grant money. And although the county's income tax rate is the lowest in the state, at 0.5%, that's likely to increase as the property tax revenue shrinks. 'If you have to raise the income tax, this is a good time to do it,' Semler said. 'They're kind of forcing us to increase LIT (local income tax) anyway,' so consider gradual increases to cushion the blow, he suggested. 'We know we're going to need it down the road.' Under the new law, cities and towns with more than 3,500 residents could adopt their own income tax in the future, up to 1.2%. Based on current population statistics, that would include Portage, Valparaiso, Chesterton, Hebron and Porter. If those municipalities enact their own income tax, their residents would be taxed twice – by the county and by the municipality, Councilman Andy Bozak, R-At-large, said. That would be the case for the wheel tax, too. Councilman Jeremy Rivas, D-2nd, speculated that Porter County might eventually see people moving into unincorporated areas from cities and towns to avoid this double taxation. 'Everybody's looking to escape the tax,' Vasquez said. One option might be for the county to work with the municipalities to give them a share of the county's income tax in exchange for not enacting their own tax, Semler said. For Porter County, $3.5 million a year in dues for the Northwest Indiana Regional Development Authority has to come from income tax revenue, so that needs to be factored in. After that, the county can figure out where the income tax revenue should be divvied up. The county has been pondering some important needs for information technology, road repairs and EMS service. Councilman Red Stone, R-1st, said on his way from Portage to Valparaiso, driving on county roads for Tuesday's meeting, his vehicle was bouncing up and down because of the poor road conditions. Porter County's roads are in worse shape than the state average. Among the drawbacks of shifting to more reliance on income tax revenue is that it's less stable. 'If there's a downturn in the economy, we're going to feel it much more than with property taxes,' Semler said. The county shouldn't hoard money, but healthy fund balances are important when revenues plunge but needs increase. Rivas and others blasted state legislators for setting themselves up as heroes for lowering property taxes even as they knew local officials would look like bad guys for raising income taxes to make up for the lost revenue. 'The legislators, this was a disingenuous action they took,' he said. The council has until Oct. 31 to decide what direction to take. 'I think that's why some counties are looking at increasing their income taxes. They know they're going to have to do it eventually,' so they're acting this year so it goes into effect next year, Semler said. Stone said in his meetings with department heads, he's looking for ways to reduce spending. 'I would strongly urge the council to put the work in,' he said. Some funds and areas can't be touched, under state law, but he wants to dig deep to see what can be cut. 'I think this would be a good exercise for the public. If there's places to cut, let us find them,' he said. Bozak disagreed with Stone's approach. 'We don't want to get too much into the weeds,' he said. A better way would be to tell department heads to decide where to make 3% cuts, hopefully not in salaries. That might be the result of cleaning less often or other ideas, Bozak said. 'Let's get in the weeds. Let's look at take-home cars,' Stone said. If there are people taking cars home who don't need to take them home, stop that. 'As far as who's taking cars home and all that, that's the commissioners,' Bozak said. Rivas said the council has been cautious for years, which is why cash balances are high and tax rates are low. 'The reason we are the lowest-tax county is because of the work we put in,' he said. 'I think the rubber's going to meet the road,' Stone said. 'If someone can come up with an extra $7 million for paving the roads, I'm all ears.' 'We are going to have to be very creative and work together the best we can and come up with some solutions,' Vasquez said. Councilwoman Michelle Harris, R-At-large, has high hopes for department heads. 'I think they're going to come up with ways to be so efficient, I think they're going to just wow us,' she said. Vasquez said he would be open to a data center being located in an area already zoned for light industrial, bringing a big boost to the county's tax coffers. 'Like all things, time will tell, and I pray God we will hold the line the best we can,' he said. Semler walked the council through the implications of Senate Enrolled Act 1 to see how Porter County will be affected as the property tax reforms are phased in. 'A lot of these are going to be phased-in impacts, and a lot of the significant impacts are going to hit us two, three years down the road,' he said. The math is long and complicated, but the upshot is that the property tax base will shrink, and as tax rates increase, more and more properties will qualify for the circuit breaker that caps the property's total tax bill. For a single-family, owner-occupied home, that's 1% of the home's value. Rental properties, utilities, assisted living homes and some other types of property have bills capped at 2% of the property's value. 'You can see how those tax bases are going to be greatly reduced' in downtowns and other areas where these properties are concentrated, Semler said. County government loses $1.8 million a year to circuit breaker relief for property owners, Semler said, but that will increase in the future. 'You lose about 3.5% of your revenue because of the circuit breaker cap,' he said. For business personal property, the tax currently begins after the first $80,000 in value. But that's changing, too, with only the value above $2 million being taxed. It's a boon to corporations but not to local government and citizens who will pay more in taxes to make up the difference. Stemler said he expects this new law to result in some discussion about consolidation. 'I can see some small cities and towns throughout the state have some difficulty surviving,' he said. Schools don't get any income taxes under this new scenario, so they'll face difficulties, too. The massive, sweeping changes resulting from the new law have increased demand for advisors like Baker Tilly. 'We don't need a marketing department. We've got legislators,' Stemler said. 'This is not what we prefer to be doing, but we're happy to help out.'

Nearly $10 million in Valparaiso roads and projects planned for summer of improvements
Nearly $10 million in Valparaiso roads and projects planned for summer of improvements

Chicago Tribune

time16-06-2025

  • Business
  • Chicago Tribune

Nearly $10 million in Valparaiso roads and projects planned for summer of improvements

Valparaiso Mayor Jon Costas said $9.4 million in funds for 2025 for city infrastructure improvements ranks as the city's 'largest-ever road resurfacing program, including collector, arterial and neighborhood streets.' 'With more than 175 miles of roadways, plus sidewalks and pathways, along with water and sewer improvements, we're working smart to enhance and promote sustainability,' Costas said in a release. 'Prior to 2024, the city had been committed to about $3.5 million annually to road maintenance, which was a productive increase over the annual paving budget of just $300,000 when I first took office more than 20 years ago. Certainly, costs have increased, but this aggressive annual budget reflects a renewed priority on roadways.' The city has launched an aggressive schedule of infrastructure projects this season, working strategically to maximize the miles and lifespan for roadways and capital projects citywide, Costas said. The 2025 paving program has plans to improve 62 lane miles, plus 40 miles of crack sealing and more than a mile of sidewalks. As part of this year's efforts, the city will also test a new road preservation method called Rejuvenation on 3.5 lane miles of recently resurfaced streets to help extend their lifespan. Council member Barbara Domer, D-3rd who serves as the council liaison for the Valparaiso Board of Works, began updating the mayor, council and public about progress in the early spring. 'Last month in May the contract was awarded to Milestone for the local streets package for about $2.9 million with an engineering estimate that was $3.2 million, so that was a money savings,' Domer said. 'The 2025 Community Crossings bid went to Rieth Riley Construction for $3.3 million with an engineering estimate of $3.6, also amounting to extra money left over. But for the 2025 sidewalk package, the bid was approved to New Tech for $652,000 and that was a bit over the engineering estimate but overall, between these two packages, we are still under.' Costas said among the 2025 project highlights this summer is a city and county partnership led by Valparaiso's engineering department to fund needed road improvements to Hayes-Leonard and Bartz roads, stretches shared between city and county jurisdiction. Costas said both roads were candidates for paving based on their low PASER ratings. As part of the Valparaiso 'thoroughfare plan,' created more than a decade ago, this summer will be the final phase to complete the extension of Goodrich Road between Ransom and Vale Park roads including a pathway on the west side while allowing for improvements to the water main and adding better drainage, according to Costas. Funding sources for this season's paving program include a $1.5 million Community Crossings matching grant awarded through the Indiana Department of Transportation, as well as funds from the local road and street fund and the motor vehicle fund, along with a short-term bond that will not result in the need to raise any taxes or fees, officials said. Costas reminded targeted roads are selected for paving based on the national PASER (Pavement Assessment Surface Evaluation Rating) rating system which assigns a value of 1 through 10 to each roadway. The number reflects the quality, including the amount and frequency of cracks and potholes. A brand new road is rated a 10 in contrast to older fractured streets requiring extensive reconstruction ranked at 1 and 2. The city's engineering department 'combines PASER data with other factors such as functional classification and traffic levels to provide a recommendation. We are also aware of future projects pending with Valparaiso City Services and NIPSCO that might affect the timing of projects,' said Max Rehlander, Valparaiso's director of engineering. 'We work to maximize our funding for the best long-term results.' In addition to roadway improvements, Valparaiso City Services is focused on $76 million of generational capital improvements in addition to yearly capital replacements to both upgrade and extend the lifespan of the city's water and sewer infrastructure. 'Investment in our utilities' infrastructure ensures clean drinking water, a cleaner environment and important safety features – all necessary in maintaining Valparaiso's quality of life,' VCS Executive Director Steve Poulos said. Rate adjustments approved in 2024 are funding these projects under a timeline that will continue through 2028. Among this year's VCS projects is more than $1.4 million in water main replacements as well as critical hydrant and valve replacements, plus sanitary sewer relining and manhole rehabilitation. In addition, VCS is finalizing plans for the future of Valparaiso's water resources which include further investigation and likely implementation for the introduction of lake water as an additional source. An interactive project list with a complete listing of roadway and capital projects is available in an interactive map at To report a roadway or sidewalk that needs attention, visit and enter key information at the 'Voice a Concern' icon found on the homepage.

New state law allots $50M for Indianapolis roads but can't be used for sidewalks, bike lanes
New state law allots $50M for Indianapolis roads but can't be used for sidewalks, bike lanes

Indianapolis Star

time05-05-2025

  • Business
  • Indianapolis Star

New state law allots $50M for Indianapolis roads but can't be used for sidewalks, bike lanes

A state matching grant program could bring $100 million more a year to Indianapolis roads, but not to its sidewalks and bike paths. The city's 8,400 lane miles are chronically underfunded because the state's road-funding formula allots the same amount to a two-lane road and a six-lane road. The new law allows Indianapolis to triple certain taxes on vehicles to raise more revenue for roads. A new state law offers Indianapolis an additional $50 million in state funding each year to improve the city's battered roads. But the money, which could prove difficult to obtain, comes with strings attached that outlaw its use for increasingly popular traffic-calming changes like narrower streets, bike trails and sidewalks. Under House Bill 1461, Indianapolis can access up to $50 million a year from the statewide Community Crossings grant program, starting in 2027. Signed into law by Indiana Gov. Mike Braun May 1, the bill also increases speed limits on Interstate 465 from 55 to 65 miles per hour, effective July 1, 2025, and offers other local governments tools to expand their road budgets. To receive the money, Indianapolis must match any dollars the state provides, meaning the city could see up to $100 million more a year for roads by 2027. But an amendment by State Sen. Aaron Freeman, R-Indianapolis, requires the city to match the state with new funding outside of its transportation and public safety budgets, a city spokesperson confirmed, which are two of the city's largest annual expenses. The 2025 city-county budget was more than $1.6 billion, with nearly $1 billion devoted to public safety services including the Indianapolis police and fire departments, the Marion County sheriff's and prosecutor's offices, and Marion County courts. The city allotted nearly $200 million to roads, bridges and greenways in 2025. The amendment also prevents Indianapolis from using the state's $50 million for five purposes: "reducing the capacity of existing roads and streets; greenways; bike lanes; bike trails; and sidewalks." Some pedestrian advocates say that provision creates an incentive for the city to maintain larger roads instead of reducing lane counts, which could decrease maintenance costs and improve overall traffic safety. The new state money won't solve Indy's pothole problem. A 2022 city-commissioned study found Indianapolis would need to spend more than $500 million a year to improve its roads to fair condition. Regardless, city leaders are praising this bill for giving Indianapolis a larger share of state dollars. Indianapolis Mayor Joe Hogsett called the legislation "the most significant new investment from the state of Indiana into Indianapolis road infrastructure in decades." The city has 8,400 miles of pavement but currently receives state funding for only 3,400 "center-lane" road miles. That discrepancy stems from a road-funding formula that disregards lane counts, sending the same amount of money to a two-lane road in a rural county and a six-lane road in Indianapolis. Can the city match up to $50 million in state funding? City officials will work in upcoming budgeting sessions to figure out how Indianapolis can shift money around to make the most of the state's contributions, Department of Public Works Director Todd Wilson said in a statement. The legislation allows the city to raise money by tripling wheel taxes on large commercial vehicles and excise taxes on smaller personal vehicles, but city leaders have not signaled whether they intend to do so. The bill raises the city's wheel tax limit from $80 to $240 and the excise tax limit from $50 to $150. Under the current limits, however, Indianapolis and Marion County still leave a combined $67 million in potential revenue on the table by charging less than the maximum allowed. "I don't see the need for us to raise our wheel tax to come up with that $50 million when we have a $1.65 billion budget, probably going up to $1.7 (billion) this next year," Republican Indianapolis City-County Councilor Joshua Bain said during an April 17 public works meeting. Democratic Councilor Jared Evans said that budgeting more money toward roads will be especially challenging because the city faces millions of dollars in lost property tax revenue after the passage of Senate Bill 1. "While it's good for the roads, we also know we have some cuts coming due to the property tax bill," Evans said in the same meeting. "I don't think it's going to be an easy thing to achieve." In a May 2 emailed statement, Indianapolis City-County Council President Vop Osili said he expects the city to benefit from the full $100 million available each year under the new law. "For too long, limited funding has prevented us from addressing the full scope of our city's infrastructure needs," Osili said. "With this additional support, more streets will be repaved, more neighborhoods will be revitalized, and more residents will experience a higher quality of life." Why the money can't go toward "road diets," bike lanes, sidewalks While a potential boon for motorists, pedestrian advocates criticize the law for limiting road improvements that enhance safety for all users. The city has redoubled its commitment to such changes in recent years with the Vision Zero plan to reduce traffic deaths and the 2022 overhaul of its Complete Streets ordinance, a policy requiring city planners to design streets with all travelers in mind. Many multi-lane roads in Indianapolis see less traffic since the advent of the interstates, local urban designer Jeffery Tompkins told IndyStar, yet the city is stuck with about 8,400 miles of pavement. Barring spending on "road diets" to remove lanes and add more bike paths and sidewalks, as the city will do south of downtown on the six-lane Madison Avenue, upholds a status quo that Indianapolis can't afford to maintain, Tompkins said. "If I was a city leader with deferred maintenance of thousands of lane miles that I couldn't pay for," Tompkins said, "I think that maybe it would be a better idea to get rid of some of those lane miles that aren't serving my population." Anthony Cherolis, executive director of Bike Indianapolis and the Central Indiana Bicycling Association, criticized Freeman in an emailed statement for "state-level meddling in local design details" that would enhance road safety for motorists, pedestrians and cyclists. Freeman did not respond to IndyStar's request for comment. In the 2024 legislative session, Freeman fought unsuccessfully to stall IndyGo's Blue Line bus route, arguing it shouldn't reduce lanes for car traffic on Washington Street. State Sen. Fady Qaddoura, D-Indianapolis, said he voted in favor of the bill despite Freeman's amendment because Indianapolis can't afford to miss out on $50 million in state money after decades of underfunding. "I'm excited for any piece of legislation that helps us address the backlog of roads and streets that need to be repaved and reconstructed, especially residential roads," Qaddoura told IndyStar.

Indiana lawmakers and Gov. Braun just increased the speed limit on I-465
Indiana lawmakers and Gov. Braun just increased the speed limit on I-465

Yahoo

time02-05-2025

  • Automotive
  • Yahoo

Indiana lawmakers and Gov. Braun just increased the speed limit on I-465

Eager central Indiana commuters will now be able to drive 65 miles per hour ― legally ― on Interstate 465. The ten mile-per-hour increase was part of a large road funding bill that Gov. Mike Braun signed into law the evening of May 1. The increase did not appear in the original legislation and did not prompt much discussion during the legislative session. House Bill 1461, now House Enrolled Act 1461, dealt more prominently with other road subjects, like tolling and the Community Crossings grant program. The Senate added language about I-465 while the bill was working its way through that chamber, and the bill author, Republican Rep. Jim Pressel of Rolling Prairie, agreed with the changes. Many Hoosiers have long felt the 55 miles-per-hour speed limit was too low. A few years ago, the Indiana Department of Transportation measured drivers' speeds at a northwest section of the interstate for 13 days and found that 96% were going over the speed limit. From 2021: Why the speed limit on I-465 is only 55 mph despite most people driving faster When Pressel presented the final version of the bill on the House floor on April 17, he acknowledged that reality and elicited some chuckles from his colleagues. "This is really not anything to do with road funding, but I like it," he said. "For those of us who struggle driving 55 miles an hour on 465, it increases the speed limit to 65. There you go." Drivers should remain vigilant about lower speed limits in work zones, such as in the I-465/I-69 construction zone on the northeast side. More: That lead foot could land a fine in your mailbox as INDOT launches speed control program Beginning May 5, there will be penalties for exceeding 11 miles per hour over the posted speed limit in those work zones. That came from another Indiana bill, passed in 2023, that enabled INDOT to pilot speed camera programs in work zones. Contact IndyStar state government and politics reporter Kayla Dwyer at kdwyer@ or follow her on X@kayla_dwyer17. Sign up for our free weekly politics newsletter,Checks & Balances, curated by IndyStar political and government reporters. This article originally appeared on Indianapolis Star: The speed limit on I-465 is now higher thanks to this Indiana law

Indiana lawmakers and Gov. Braun just increased the speed limit on I-465
Indiana lawmakers and Gov. Braun just increased the speed limit on I-465

Indianapolis Star

time02-05-2025

  • Automotive
  • Indianapolis Star

Indiana lawmakers and Gov. Braun just increased the speed limit on I-465

Eager central Indiana commuters will now be able to drive 65 miles per hour ― legally ― on Interstate 465. The ten mile-per-hour increase was part of a large road funding bill that Gov. Mike Braun signed into law the evening of May 1. The increase did not appear in the original legislation and did not prompt much discussion during the legislative session. House Bill 1461, now House Enrolled Act 1461, dealt more prominently with other road subjects, like tolling and the Community Crossings grant program. The Senate added language about I-465 while the bill was working its way through that chamber, and the bill author, Republican Rep. Jim Pressel of Rolling Prairie, agreed with the changes. Many Hoosiers have long felt the 55 miles-per-hour speed limit was too low. A few years ago, the Indiana Department of Transportation measured drivers' speeds at a northwest section of the interstate for 13 days and found that 96% were going over the speed limit. When Pressel presented the final version of the bill on the House floor on April 17, he acknowledged that reality and elicited some chuckles from his colleagues. "This is really not anything to do with road funding, but I like it," he said. "For those of us who struggle driving 55 miles an hour on 465, it increases the speed limit to 65. There you go." Drivers should remain vigilant about lower speed limits in work zones, such as in the I-465/I-69 construction zone on the northeast side. Beginning May 5, there will be penalties for exceeding 11 miles per hour over the posted speed limit in those work zones. That came from another Indiana bill, passed in 2023, that enabled INDOT to pilot speed camera programs in work zones.

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