Indianapolis Council overrides mayor's veto on vehicle tax

The Indianapolis City-County Council has voted 17-7 to override Mayor Joe Hogsett’s veto of a new vehicle tax, a move that will significantly increase registration costs for drivers starting January 1. Under the new law, passenger vehicle registration fees will rise to $100 annually, up from an average of approximately $20. Owners of larger vehicles will face a $240 fee. Supporters indicate the tax is expected to generate $356 million for road projects and may help the city qualify for up to $50 million in state road grants.

In a separate development, Mayor Hogsett presented a proposed $1.9 billion budget for 2027. The plan focuses heavily on public safety, which accounts for roughly 40% ($761 million) of the budget, including funding for the Indianapolis Metropolitan Police Department and gun violence reduction. Another $530 million is earmarked for community development and infrastructure. To fund these initiatives, the mayor intends to rely on increases in property taxes, stormwater fees, and local income taxes.