Ind. Code ch. 6-3.5-11

in effect

Ind. Code § 6-3.5-11-0.5 Ordinance amendments; application; liability

Sec. 0.5. (a) This section applies to an ordinance adopted under this chapter and in effect on January 1, 2020. (b) An adopting municipality is not required to amend an ordinance subject to this section as a result of amendments to this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax. (c) The bureau of motor vehicles shall apply an ordinance subject to this section as if the ordinance is in compliance with this chapter concerning vehicle type or weight class for purposes of determining vehicles that are subject to the wheel tax. (d) The bureau of motor vehicles is not liable to an adopting municipality or any taxpayer for actions taken under this section. As added by P.L.178-2019, SEC.19.

Ind. Code § 6-3.5-11-1 Definitions

Sec. 1. The following definitions apply throughout this chapter: (1) "Adopting municipality" means an eligible municipality that has adopted the wheel tax. (2) "Branch office" means a branch office of the bureau of motor vehicles. (3) "Bus" has the meaning set forth in IC 9-13-2-17. (4) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b). (5) "Department" refers to the department of state revenue. (6) "Eligible municipality" means a municipality having a population of at least five thousand (5,000). (7) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b). (8) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155. (9) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150. (10) "School bus" has the meaning set forth in IC 9-13-2-161(a). (11) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a). (12) "State agency" has the meaning set forth in IC 34-6-2.1-194. (13) "Tractor" has the meaning set forth in IC 9-13-2-180. (14) "Trailer" has the meaning set forth in IC 9-13-2-184(a). (15) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets. (16) "Truck" has the meaning set forth in IC 9-13-2-188(a). (17) "Wheel tax" means the tax imposed under this chapter. As added by P.L.146-2016, SEC.12. Amended by P.L.257-2017, SEC.7; P.L.218-2017, SEC.29; P.L.256-2017, SEC.15; P.L.86-2018, SEC.75; P.L.186-2025, SEC.69.

Ind. Code § 6-3.5-11-2 Imposition of tax; municipal wheel tax; rate; unpaid tax

Sec. 2. (a) The fiscal body of an eligible municipality may, subject to subsections (b) and (c), adopt an ordinance to impose a municipal wheel tax in accordance with this chapter on each vehicle that: (1) is included in one (1) of the classes of vehicles listed in section 3 of this chapter; (2) is not exempt from the wheel tax under section 4 of this chapter; and (3) is registered in the eligible municipality. (b) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-10 to impose the municipal vehicle excise tax. (c) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the eligible municipality uses a transportation asset management plan approved by the Indiana department of transportation. (d) The fiscal body of an eligible municipality may impose the wheel tax at a different rate for each of the classes of vehicles listed in section 3 of this chapter. In addition, the fiscal body may establish different rates within the classes of buses, recreational vehicles, semitrailers, trailers, tractors, and trucks based on weight classifications of those vehicles that are established by the bureau of motor vehicles for use throughout Indiana. However, the wheel tax rate for a particular class or weight classification of vehicles may not be less than five dollars ($5) and may not exceed forty dollars ($40). The fiscal body shall state the initial wheel tax rates in the ordinance that imposes the tax. (e) Subject to subsection (f), a wheel tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered. (f) If the municipal wheel tax imposed by this chapter was not paid for one (1) or more preceding registration years, the bureau may collect only the municipal wheel tax imposed by this chapter for the: (1) registration year immediately preceding the current registration year; (2) current registration year; and (3) registration year immediately following the current registration year. As added by P.L.146-2016, SEC.12. Amended by P.L.256-2017, SEC.16; P.L.178-2019, SEC.20.

Ind. Code § 6-3.5-11-3 Vehicles subject to tax

Sec. 3. The wheel tax applies to the following classes of vehicles: (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. As added by P.L.146-2016, SEC.12. Amended by P.L.178-2019, SEC.21.

Ind. Code § 6-3.5-11-4 Exempt vehicles

Sec. 4. A vehicle is exempt from the wheel tax imposed under this chapter if the vehicle is: (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 IC 6-3.5-10; (5) a bus owned and 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; or (7) a motor vehicle that is funeral equipment and that is used in the operation of funeral services (as defined in IC 25-15-2-17). As added by P.L.146-2016, SEC.12. Amended by P.L.257-2017, SEC.8; P.L.256-2017, SEC.17; P.L.86-2018, SEC.76.

Ind. Code § 6-3.5-11-5 Registration of vehicles

Sec. 5. If the fiscal body of an eligible municipality adopts an ordinance imposing the wheel tax after December 31 but on or before September 1 of the following year, a vehicle described in section 2(a) of this chapter is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year in which the ordinance is adopted. If a fiscal body adopts an ordinance imposing the wheel tax after September 1 but before the following January 1, a vehicle described in section 2(a) of this chapter is subject to the tax if the vehicle is registered in the adopting municipality after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the tax is effective, the tax does not apply to the registration of a motor vehicle for the registration year that commenced in the calendar year preceding the year the tax is first effective. As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.30.

Ind. Code § 6-3.5-11-6 Rescission of wheel tax and vehicle excise tax

Sec. 6. (a) After January 1 but on or before September 1 of any year, the fiscal body of an adopting municipality may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the wheel tax. If a fiscal body adopts an ordinance to rescind the wheel tax, the wheel tax does not apply to a vehicle registered after December 31 of the year the ordinance is adopted. (b) The fiscal body of an adopting municipality may not adopt an ordinance to rescind the wheel tax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-10 to rescind the annual license excise surtax. As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.31.

Ind. Code § 6-3.5-11-7 Increase or decrease of tax; rates

Sec. 7. The fiscal body of an adopting municipality may adopt an ordinance to increase or decrease the wheel tax rates. The new wheel tax rates must be within the range of rates prescribed by section 2 of this chapter. New rates that are established by an ordinance that is adopted after December 31 but on or before September 1 of the following year apply to vehicles registered after December 31 of the year in which the ordinance to change the rates is adopted. New rates that are established by an ordinance that is adopted after September 1 but before January 1 of the following year apply to motor vehicles registered after December 31 of the year following the year in which the ordinance is adopted. However, in the first year the wheel tax rates are effective, the wheel tax rates do not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the wheel tax rates are first effective. As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.32; P.L.111-2021, SEC.7.

Ind. Code § 6-3.5-11-8 Adopted ordinance; letter approving transportation asset management plan; transmittal of copies

Sec. 8. (a) If the fiscal body of an eligible municipality adopts an ordinance to impose, rescind, or change the rates of the wheel tax, the fiscal body shall send a copy of the ordinance and a copy of a letter from the department of transportation approving the eligible municipality's transportation asset management plan to: (1) the bureau of motor vehicles; and (2) the department of state revenue; on or before September 1 to be effective January 1 of the following calendar year. (b) For copies required to be sent to the bureau of motor vehicles under subsection (a), the fiscal body shall submit all copies in a manner prescribed by the bureau of motor vehicles. As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.33; P.L.178-2019, SEC.22.

Ind. Code § 6-3.5-11-9 Credit upon sale of vehicle

Sec. 9. (a) Every owner of a vehicle for which the wheel tax has been paid for the owner's registration year is entitled to a credit if during that registration year the owner sells the vehicle. The amount of the credit equals the wheel tax paid by the owner for the vehicle that was sold. The credit may be applied by the owner only against the wheel tax owed for a vehicle that is purchased during the same registration year. (b) An owner of a vehicle is not entitled to a refund of any part of a credit that is not used under this section. As added by P.L.146-2016, SEC.12.

Ind. Code § 6-3.5-11-10 Registration of vehicle; wheel tax; amount; collection

Sec. 10. A person may not register a vehicle in an adopting municipality unless the person pays the wheel tax due, if any, to the bureau of motor vehicles. The amount of the wheel tax due is based on the wheel tax rate, for that class of vehicle, in effect at the time of registration. The bureau of motor vehicles shall collect the wheel tax due, if any, at the time a motor vehicle is registered. The following, as applicable, may impose a service charge of fifteen cents ($0.15) for each wheel tax collection made under this chapter: (1) The department. (2) The bureau under IC 9-14-8-3. As added by P.L.146-2016, SEC.12. Amended by P.L.256-2017, SEC.18.

Ind. Code § 6-3.5-11-11 Apportioned wheel tax for certain vehicles

Sec. 11. (a) An owner of one (1) or more commercial vehicles paying an apportioned registration to the state under the International Registration Plan that is required to pay a wheel tax shall pay an apportioned wheel tax calculated by dividing in-state actual miles by total fleet miles generated during the preceding year. If in-state miles are estimated for purposes of proportional registration, these miles are divided by total actual and estimated fleet miles. The apportioned wheel tax under this section shall be paid at the same time and in the same manner as the commercial vehicle excise tax under IC 6-6-5.5. (b) A voucher from the department showing payment of the wheel tax may be accepted by the bureau of motor vehicles instead of the payment required under section 10 of this chapter. As added by P.L.146-2016, SEC.12.

Ind. Code § 6-3.5-11-12 Collections; remittance; report

Sec. 12. Not more than twenty-one (21) days after collecting the wheel tax, the bureau of motor vehicles shall remit the wheel tax to the fiscal officer of the adopting municipality that imposed the wheel tax. Concurrently with the remittance, the bureau shall file a wheel tax collections report prepared on forms prescribed by the state board of accounts with the fiscal officer of the adopting municipality. As added by P.L.146-2016, SEC.12. Amended by P.L.111-2021, SEC.8.

Ind. Code § 6-3.5-11-13 Collection by bureau of motor vehicles or department of state revenue; remittance; report

Sec. 13. (a) If the wheel tax is collected directly by the bureau of motor vehicles instead of at a branch office, the commissioner of the bureau shall: (1) remit the wheel tax to, and file a wheel tax collections report with, the fiscal officer of the appropriate municipality; and (2) file a wheel tax collections report with the fiscal officer of the appropriate municipality; in the same manner and at the same time that a branch office manager is required to remit and report under section 12 of this chapter. (b) If the wheel tax for a commercial vehicle is collected directly by the department, the commissioner of the department shall: (1) remit the wheel tax to, and file a wheel tax collections report with, the fiscal officer of the appropriate municipality; and (2) file a wheel tax collections report with the fiscal officer of the appropriate municipality; in the same manner and at the same time that a branch office manager is required to remit and report under section 12 of this chapter. As added by P.L.146-2016, SEC.12.

Ind. Code § 6-3.5-11-14 Wheel tax fund; use

Sec. 14. (a) The fiscal officer of an adopting municipality shall deposit the wheel tax revenues in a fund to be known as the "municipal wheel tax fund". (b) An adopting municipality may use the wheel tax revenues that the municipality receives under this section only: (1) to construct, reconstruct, repair, or maintain streets and roads under its jurisdiction; (2) as a contribution to an authority established under IC 36-7-23; or (3) for the county's, city's, or town's contribution to obtain a grant from the local road and bridge matching grant fund under IC 8-23-30. As added by P.L.146-2016, SEC.12.

Ind. Code § 6-3.5-11-15 Estimate of revenues

Sec. 15. On or before October 1 of each year, the fiscal officer of an adopting municipality shall provide the fiscal body of the adopting municipality with an estimate of the wheel tax revenues to be received by the adopting municipality during the next calendar year. The adopting municipality shall include the estimated wheel tax revenues in the adopting municipality's budget estimate for the calendar year. As added by P.L.146-2016, SEC.12. Amended by P.L.218-2017, SEC.34.

Ind. Code § 6-3.5-11-16 Violations; offense

Sec. 16. (a) The owner of a vehicle who knowingly registers the vehicle without paying the wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor. (b) An employee of the bureau of motor vehicles who recklessly issues a registration on any vehicle without collecting the wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor. As added by P.L.146-2016, SEC.12.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026