The City of Evansville has announced it is pursuing a new Wheel Tax to help fund the repairs of city streets.
It is expected to take effect January first of 2026 and cost drivers $25 to register their passenger vehicle. Motorcycles would cost $15 and heavy trucks $35. This is in response to reduced state revenue sharing and a backlog of deteriorating city streets.
City Council President Ben Trockman said road quality is the number-one issue residents raise.
“We have a lot of work to do, and so it's important that we invest in one of our most important pieces of infrastructure, which is our roads. So now is the time,” he said.
“When you think about business, think about individuals looking to move to communities or stay in communities. Quality infrastructure is absolutely crucial.”
According to the city, Evansville is one of the few remaining large Indiana cities to not have a wheel tax. Currently 90 cities have it, including Bloomington, South Bend and Fort Wayne.
The mayor’s office is estimating that the tax will raise $2.7 million annually. This is still well short of the estimated $12 million needed to stop roads from further deteriorating.
Evansville Engineers already have 15 road sections picked out for repair. Priority is based on the quality of the street, speed limit and amount of traffic.
Income from wheel taxes will first be used on specific sections of city streets, such as Vann Avenue from Pollack Avenue to Covert Avenue.
Trockman said the city engineers estimate that each mile of road costs $300 thousand to pave. The city has 500 miles to maintain. Evansville Mayor Stephanie Terry said this is one part of the solution.
“This is a step that we have to take in order to ensure that we're getting what we already were getting in funding, and hopefully get more to continue to address the challenges that we face in our city as it relates to infrastructure.”
Without a wheel tax, the city could not continue to qualify for matching state grants.
Evansville is projected to lose millions of dollars in property tax revenue in 2026, due to Senate Bill 1, now known as Senate Enrolled Act 1, or SEA1. According to a city news release, during the same legislative session, Indiana passed House Enrolled Act 1461 (HEA 1461), requiring cities to adopt the Wheel and Excise Tax in order to qualify for Lane Mile Distribution Dollars, “a new, guaranteed state funding stream for local roads.”
The City Council still needs to pass it into local law. It will be introduced at the Monday meeting, and reviewed over the coming weeks.
In reality, the city said it could use up to $20 million for several years to “fully restore” city streets.
“We're really still trying to catch up, being quite honest,” Terry said. “And roads are continuing to deteriorate, and they will, if this tax does not pass.”
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Evansville road repair priorities
Franklin St., from Fulton Ave. to First Ave.
Washington Ave., from Green River Rd. To Newburgh Rd.
Division St., from Cullen Ave. to Fielding Ave.
Lincoln Ave., from Rotherwood to US 41
Cherry St., from Riverside Dr. to SE 4th St.
USING WHEEL TAX FUNDS:
Division St., from Wesselman Park to Stockwell Rd.
Sycamore St., from NW 5th St. to Heidelbach Ave.
Vann Ave., from Covert Ave. to Washington Ave.
Vine St., from NW 5th St. to NW 10th St.
Sonntag Ave., from Maryland Ave. To Mt. Vernon Ave.
Riverside Dr., from Ohio St. to Court St.
Buchannon Rd., from First Ave. to Mt. Auburn Rd.
Vann Ave., from Pollack Ave. to Covert Ave.
Read St., from Division St. to Columbia St.
Franklin St. from Baker Ave. to Garvin St.