Ind. Code ch. 6-3.5-5

Ind. Code ch. 6-3.5-5
in effect

Ind. Code § 6-3.5-5-0.5 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 entity 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 entity or any taxpayer for actions taken under this section. As added by P.L.178-2019, SEC.9.

Ind. Code § 6-3.5-5-1 Definitions

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 1. The following definitions apply throughout this chapter: (1) "Adopting entity" means either the county council or the local income tax council established by IC 6-3.6-3-1 for the county, whichever adopts an ordinance to impose a wheel tax first. (2) "Bus" has the meaning set forth in IC 9-13-2-17. (3) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b). (4) "County council" includes the city-county council of a county that contains a consolidated city of the first class. (5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b). (6) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155. (7) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150. (8) "School bus" has the meaning set forth in IC 9-13-2-161(a). (9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a). (10) "State agency" has the meaning set forth in IC 34-6-2.1-194. (11) "Tractor" has the meaning set forth in IC 9-13-2-180. (12) "Trailer" has the meaning set forth in IC 9-13-2-184(a). (13) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets. (14) "Truck" has the meaning set forth in IC 9-13-2-188(a). (15) "Wheel tax" means the tax imposed under this chapter. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.3-1989, SEC.40; P.L.2-1991, SEC.38; P.L.1-1998, SEC.79; P.L.1-2007, SEC.62; P.L.211-2007, SEC.30; P.L.205-2013, SEC.92; P.L.146-2016, SEC.8; P.L.198-2016, SEC.24; P.L.197-2016, SEC.36; P.L.257-2017, SEC.5; P.L.256-2017, SEC.7; P.L.186-2025, SEC.68.

Ind. Code § 6-3.5-5-1 Definitions

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 1. The following definitions apply throughout this chapter: (1) "Adopting entity" means the adopting body specified in IC 6-3.6-3-1(a). (2) "Bus" has the meaning set forth in IC 9-13-2-17. (3) "Commercial vehicle" has the meaning set forth in IC 6-6-5.5-1(b). (4) "County council" includes the city-county council of a county that contains a consolidated city of the first class. (5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b). (6) "Political subdivision" has the meaning set forth in IC 34-6-2.1-155. (7) "Recreational vehicle" has the meaning set forth in IC 9-13-2-150. (8) "School bus" has the meaning set forth in IC 9-13-2-161(a). (9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a). (10) "State agency" has the meaning set forth in IC 34-6-2.1-194. (11) "Tractor" has the meaning set forth in IC 9-13-2-180. (12) "Trailer" has the meaning set forth in IC 9-13-2-184(a). (13) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets. (14) "Truck" has the meaning set forth in IC 9-13-2-188(a). (15) "Wheel tax" means the tax imposed under this chapter. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.3-1989, SEC.40; P.L.2-1991, SEC.38; P.L.1-1998, SEC.79; P.L.1-2007, SEC.62; P.L.211-2007, SEC.30; P.L.205-2013, SEC.92; P.L.146-2016, SEC.8; P.L.198-2016, SEC.24; P.L.197-2016, SEC.36; P.L.257-2017, SEC.5; P.L.256-2017, SEC.7; P.L.186-2025, SEC.68; P.L.68-2025, SEC.89; P.L.186-2025, SEC.269.

Ind. Code § 6-3.5-5-1.1 Local income tax council

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 1.1. For purposes of acting as the adopting entity under this chapter, a local income tax council is comprised of the same members as the local income tax council that is established by IC 6-3.6-3-1 for the county. The local income tax council shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter. As added by P.L.205-2013, SEC.93. Amended by P.L.197-2016, SEC.37.

Ind. Code § 6-3.5-5-1.1 Adopting body

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 1.1. The adopting entity shall use the same procedures that apply under IC 6-3.6-3 when acting as an adopting entity under this chapter. As added by P.L.205-2013, SEC.93. Amended by P.L.197-2016, SEC.37; P.L.68-2025, SEC.90.

Ind. Code § 6-3.5-5-2 Imposition and rate of wheel tax

Sec. 2. (a) The adopting entity of any county may, subject to the limitation imposed by subsection (b), adopt an ordinance to impose a county 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; (3) is registered in the county; and (4) is not registered in an adopting municipality of the county where a municipal wheel tax went into effect after December 31, 2026, in the adopting municipality. (b) The adopting entity of a county may not adopt an ordinance to impose the wheel tax unless it concurrently adopts an ordinance under IC 6-3.5-4 to impose the county vehicle excise tax. (c) The adopting entity 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 adopting entity may establish different rates within the classes of buses, 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. Except as otherwise provided in subsection (f), the wheel tax rate for a particular class or weight classification of vehicles: (1) may not be less than five dollars ($5) and may not exceed forty dollars ($40), if the county does not use a transportation asset management plan approved by the Indiana department of transportation; or (2) may not be less than five dollars ($5) and may not exceed eighty dollars ($80), if the county uses a transportation asset management plan approved by the Indiana department of transportation. The adopting entity shall state the initial wheel tax rates in the ordinance that imposes the tax. (d) Subject to subsection (e), 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. (e) If the county wheel tax imposed by this chapter was not paid for one (1) or more preceding years, the bureau may collect only the county 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. (f) Beginning July 1, 2025, if a county containing a consolidated city uses a transportation asset management plan approved by the Indiana department of transportation, 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 two hundred forty dollars ($240). As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.6; P.L.205-2013, SEC.94; P.L.146-2016, SEC.9; P.L.256-2017, SEC.8; P.L.178-2019, SEC.10; P.L.173-2025, SEC.5; P.L.147-2026, SEC.5.

Ind. Code § 6-3.5-5-3 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; and (5) trucks and tractors with a declared gross weight of more than eleven thousand (11,000) pounds. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.178-2019, SEC.11.

Ind. Code § 6-3.5-5-4 Exempt vehicles

Sec. 4. A vehicle is exempt from the wheel tax imposed under this chapter if the vehicle is: (1) owned by this state; (2) owned by a state agency of this state; (3) owned by a political subdivision of this state; (4) subject to the annual license excise surtax imposed under IC 6-3.5-4; (5) a bus owned and operated by a religious or nonprofit youth organization and used to haul persons to religious services or for the benefit of their 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 Acts 1980, P.L.10, SEC.5. Amended by P.L.257-2017, SEC.6.

Ind. Code § 6-3.5-5-5 Vehicles subject to wheel tax

Sec. 5. If an adopting entity adopts an ordinance imposing the wheel tax after December 31 but before September 1 of the following year, the wheel tax applies after December 31 of the year in which the ordinance is adopted. If an adopting entity adopts an ordinance imposing the wheel tax after August 31 but before the following January 1, the wheel tax applies 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 Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.7; P.L.43-1994, SEC.2; P.L.205-2013, SEC.95; P.L.218-2017, SEC.17; P.L.147-2026, SEC.6.

Ind. Code § 6-3.5-5-6 Rescission of wheel tax and vehicle excise tax

Sec. 6. (a) After January 1 but on or before September 1 of any year, the adopting entity may, subject to the limitations imposed by subsection (b), adopt an ordinance to rescind the wheel tax. If the adopting entity adopts such an ordinance, the wheel tax does not apply to a vehicle registered after December 31 of the year the ordinance is adopted. (b) The adopting entity may not adopt an ordinance to rescind the wheel tax unless it concurrently adopts an ordinance under IC 6-3.5-4 to rescind the annual license excise surtax. In addition, the adopting entity may not adopt an ordinance to rescind the wheel tax if: (1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or (2) any bonds issued by the county under IC 8-14-9 are outstanding. As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1981, P.L.88, SEC.3; P.L.205-2013, SEC.96; P.L.218-2017, SEC.18.

Ind. Code § 6-3.5-5-7 Increase or decrease of tax; rates

Sec. 7. (a) The adopting entity may, subject to the limitations imposed by subsection (b), 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. (b) The adopting entity may not adopt an ordinance to decrease the wheel tax rates under this section if: (1) any portion of a loan obtained by the county under IC 8-14-8 is unpaid; or (2) any bonds issued by the county under IC 8-14-9 are outstanding. As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1981, P.L.88, SEC.4; P.L.85-1983, SEC.8; P.L.205-2013, SEC.97; P.L.218-2017, SEC.19; P.L.111-2021, SEC.3.

Ind. Code § 6-3.5-5-8 Adopted ordinance; letter approving transportation asset management plan; transmittal of copies

Sec. 8. (a) If an adopting entity adopts an ordinance to impose, rescind, or change the rates of the wheel tax, the adopting entity shall send a copy of the ordinance and, if applicable, a copy of a letter from the Indiana department of transportation approving the adopting entity'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), an adopting entity shall submit all copies in a manner prescribed by the bureau of motor vehicles. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.205-2013, SEC.98; P.L.218-2017, SEC.20; P.L.178-2019, SEC.12.

Ind. Code § 6-3.5-5-8.5 Credit upon sale of vehicle

Sec. 8.5. (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 owed for and paid during the current registration year by the owner for the vehicle that was sold. The credit may only be applied by the owner 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.86-1983, SEC.1. Amended by P.L.256-2017, SEC.9.

Ind. Code § 6-3.5-5-9 Collection of wheel tax; service charge

Sec. 9. (a) A person may not register a vehicle in a county which has adopted the wheel tax 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. (b) The bureau of motor vehicles shall collect the wheel tax due, if any, at the time a motor vehicle is registered. (c) The department of state revenue or the bureau of motor vehicles, as applicable, may impose a service charge of fifteen cents ($0.15) for each wheel tax collection made under this chapter. (d) A service charge imposed under this section by the bureau shall be deposited in the bureau of motor vehicles commission fund. (e) A service charge imposed under this section by the department of state revenue shall be deposited in the motor carrier regulation fund established by IC 8-2.1-23-1. [Pre-2016 Title 9 Revision Citations: subsection (c) formerly 9-29-1-10(b); 9-29-1-10(c); subsection (d) formerly 9-29-1-10(d); subsection (e) formerly 9-29-1-10(e).] As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.9; P.L.198-2016, SEC.25.

Ind. Code § 6-3.5-5-9.5 Apportioned wheel tax for certain vehicles

Sec. 9.5. (a) This section applies to a wheel tax that is: (1) adopted after June 30, 2007; or (2) collected after June 30, 2017. (b) 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. (c) A voucher from the department of state revenue showing payment of the wheel tax may be accepted by the bureau of motor vehicles in lieu of the payment required under section 9 of this chapter. As added by P.L.211-2007, SEC.31. Amended by P.L.85-2017, SEC.23; P.L.218-2017, SEC.21.

Ind. Code § 6-3.5-5-11 Collections; remittance; report

Sec. 11. Not more than twenty-one (21) days after collecting the wheel tax, the bureau of motor vehicles shall remit the wheel tax to the county treasurer of the county 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 county treasurer and the county auditor. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.11; P.L.111-2021, SEC.4.

Ind. Code § 6-3.5-5-13 Remittance and reporting of wheel tax by department

Sec. 13. If the wheel tax for a commercial vehicle is collected directly by the department of state revenue, the commissioner of the department of state revenue shall: (1) remit the wheel tax to, and file a wheel tax collections report with, the appropriate county treasurer; and (2) file a wheel tax collections report with the county auditor; in the same manner and at the same time that the bureau of motor vehicles is required to remit and report under section 11 of this chapter. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.211-2007, SEC.32; P.L.198-2016, SEC.26.

Ind. Code § 6-3.5-5-14 Appropriation of money derived from wheel tax

Sec. 14. (a) Except as provided in subsection (b), in the case of a county that contains a consolidated city, the city-county council may appropriate money derived from the wheel tax to: (1) the department of transportation established by IC 36-3-5-4 for use by the department under law; or (2) an authority established under IC 36-7-23. (b) Beginning July 1, 2025, the city-county council must appropriate money derived from the wheel tax for the purposes allowed under IC 8-14-1-4(c). (c) The city-county council may not appropriate money derived from the wheel tax for any other purpose. As added by Acts 1980, P.L.10, SEC.5. Amended by Acts 1982, P.L.33, SEC.8; P.L.346-1989(ss), SEC.1; P.L.173-2025, SEC.6.

Ind. Code § 6-3.5-5-15 Wheel tax fund; allocation; distribution; use

Sec. 15. (a) In the case of a county that does not contain a consolidated city, the county treasurer shall deposit the wheel tax revenues in a fund to be known as the "County Wheel Tax Fund". (b) Before the twentieth day of each month, the county auditor shall allocate the money deposited in the county wheel tax fund during that month among the county and the cities and the towns in the county that are not adopting municipalities (as defined in IC 6-3.5-11-1) in which a municipal wheel tax went into effect after December 31, 2026. The county auditor shall allocate the money to counties, cities, and towns under IC 8-14-2-4(c)(1) through IC 8-14-2-4(c)(3), except that for purposes of making the allocations: (1) the population of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0); (2) the street mileage of a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is considered to be zero (0) miles; and (3) the allocation to a city or town that is an adopting municipality in which a municipal wheel tax went into effect after December 31, 2026, is zero dollars ($0). (c) Before the twenty-fifth day of each month, the county treasurer shall distribute to the county and the cities and towns in the county the money deposited in the county wheel tax fund during that month. The county treasurer shall base the distribution on allocations made by the county auditor for that month under subsection (b). (d) A county, city, or town may only use the wheel tax revenues it receives under this section: (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 Acts 1980, P.L.10, SEC.5. Amended by P.L.85-1983, SEC.9; P.L.346-1989(ss), SEC.2; P.L.146-2016, SEC.10; P.L.147-2026, SEC.7.

Ind. Code § 6-3.5-5-16 Estimate of revenues; distribution

Sec. 16. (a) On or before October 1 of each year, the auditor of a county that contains a consolidated city of the first class and that has adopted the wheel tax shall provide the county council with an estimate of the wheel tax revenues to be received by the county during the next calendar year. The county shall show the estimated wheel tax revenues in its budget estimate for the calendar year. (b) On or before October 1 of each year, the auditor of a county that does not contain a consolidated city of the first class and that has adopted the wheel tax shall provide the county and each city and town in the county with an estimate of the wheel tax revenues to be distributed to that unit during the next calendar year. The county, city, or town shall show the estimated wheel tax revenues in its budget estimate for the calendar year. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.218-2017, SEC.22.

Ind. Code § 6-3.5-5-17 Repealed

As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.42-1986, SEC.4; P.L.2-1991, SEC.39. Repealed by P.L.149-2015, SEC.13.

Ind. Code § 6-3.5-5-18 Violations; offense

Sec. 18. (a) The owner of a vehicle who knowingly registers the vehicle without paying 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 wheel tax imposed under this chapter with respect to that registration commits a Class B misdemeanor. As added by Acts 1980, P.L.10, SEC.5. Amended by P.L.149-2015, SEC.14.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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