Ind. Code ch. 6-3.5-10

Ind. Code ch. 6-3.5-10
in effect

Ind. Code § 6-3.5-10-0.5 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 surtax. (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 surtax. (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.13.

Ind. Code § 6-3.5-10-1 Definitions

Sec. 1. The following definitions apply throughout this chapter: (1) "Adopting municipality" means an eligible municipality that has adopted the surtax. (2) "Eligible municipality" means a municipality having a population of at least five thousand (5,000). (3) "Fiscal body" has the meaning set forth in IC 36-1-2-6. (4) "Fiscal officer" has the meaning set forth in IC 36-1-2-7. (5) "Vehicle" has the meaning set forth in IC 6-6-5-1(b). (6) "Municipality" has the meaning set forth in IC 36-1-2-11. (7) "Surtax" means the municipal vehicle excise tax imposed by the fiscal body of an eligible municipality under this chapter. (8) "Transportation asset management plan" includes planning for drainage systems and rights-of-way that affect transportation assets. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.23; P.L.256-2017, SEC.10; P.L.86-2018, SEC.74.

Ind. Code § 6-3.5-10-2 Imposition and rate of surtax; restrictions; unpaid tax

Sec. 2. (a) The fiscal body of an eligible municipality may, subject to subsections (c) and (d), adopt an ordinance to impose a municipal vehicle excise tax on each vehicle that is subject to the vehicle excise tax under IC 6-6-5 and that is registered in the eligible municipality. The eligible municipality may impose the surtax at a specific amount of: (1) at least seven dollars and fifty cents ($7.50); and (2) not more than twenty-five dollars ($25). The eligible municipality shall state the surtax rate or amount in the ordinance that imposes the tax. (b) Subject to the limits and requirements of this section and except as provided in IC 6-6-5-0.5(2), the fiscal body of an eligible municipality may do any of the following: (1) Impose the municipal vehicle excise tax at the same amount on each vehicle that is subject to the tax. (2) Impose the municipal vehicle excise tax on vehicles subject to the tax at one (1) or more different amounts based on the class of vehicle listed in IC 6-6-5-2(a). (c) The fiscal body of an eligible municipality may not adopt an ordinance to impose the surtax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-11 to impose the municipal wheel tax. (d) The fiscal body of an eligible municipality may not adopt an ordinance to impose the surtax unless the eligible municipality uses a transportation asset management plan approved by the Indiana department of transportation. (e) Except as provided under section 8.5 of this chapter (before its expiration on December 31, 2023) and subject to subsection (f), a municipal vehicle excise 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 vehicle excise tax imposed by this chapter was not paid for one (1) or more preceding registration years, the bureau may collect only the municipal vehicle excise 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.11. Amended by P.L.256-2017, SEC.11; P.L.178-2019, SEC.14; P.L.114-2021, SEC.4; P.L.236-2023, SEC.72.

Ind. Code § 6-3.5-10-3 Vehicles subject to tax

Sec. 3. If the fiscal body of an eligible municipality adopts an ordinance imposing the surtax after December 31 but on or before September 1 of the following year, a vehicle 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 the fiscal body of an eligible municipality adopts an ordinance imposing the surtax after September 1 but before the following January 1, a vehicle 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 surtax is effective, the surtax does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax is first effective. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.24; P.L.178-2019, SEC.15.

Ind. Code § 6-3.5-10-4 Rescission of surtax and wheel tax

Sec. 4. (a) After January 1 but 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 surtax. If a fiscal body adopts an ordinance to rescind the surtax, the surtax does not apply to a vehicle registered after December 31 of the year in which the ordinance is adopted. (b) A fiscal body may not adopt an ordinance to rescind the surtax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-11 to rescind the municipal wheel tax. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.25; P.L.178-2019, SEC.16.

Ind. Code § 6-3.5-10-5 Increase or decrease of surtax

Sec. 5. The fiscal body of an adopting municipality may adopt an ordinance to increase or decrease the surtax amount. The new surtax amount must be within the range of amounts prescribed by section 2 of this chapter. A new amount that is established by an ordinance that is adopted after December 31 but on or before September 1 of the following year applies to motor vehicles registered after December 31 of the year in which the ordinance to change the amount is adopted. A new amount that is established by an ordinance that is adopted after September 1 but before January 1 of the following year applies 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 surtax amount is effective, the surtax amount does not apply to the registration of a vehicle for the registration year that commenced in the calendar year preceding the year the surtax amount is first effective. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.26; P.L.111-2021, SEC.5.

Ind. Code § 6-3.5-10-6 Adopted ordinance; letter approving transportation asset management plan; transmittal of copies

Sec. 6. (a) If the fiscal body of an eligible municipality adopts an ordinance to impose, rescind, or change the amount of the surtax, the fiscal body shall send a copy of the ordinance and a copy of a letter from the Indiana department of transportation approving the eligible municipality's transportation asset management plan to the bureau of motor vehicles on or before September 1 to be effective January 1 of the following calendar year. (b) The fiscal body shall submit all copies under subsection (a) in a manner prescribed by the bureau of motor vehicles. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.27; P.L.178-2019, SEC.17.

Ind. Code § 6-3.5-10-7 Registration of vehicle; collection of surtax

Sec. 7. Except for a person described under section 8.5 of this chapter (before its expiration on December 31, 2023), a person may not register a vehicle in an adopting municipality unless the person pays the surtax due, if any, to the bureau of motor vehicles. The amount of the surtax due equals the amount established under section 2 of this chapter. The bureau of motor vehicles shall collect the surtax due, if any, at the time a vehicle is registered. As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.12; P.L.114-2021, SEC.5; P.L.236-2023, SEC.73.

Ind. Code § 6-3.5-10-8 Surtax reduction; credit; adjustment; refund

Sec. 8. (a) If a vehicle has been acquired or brought into Indiana, or for any other reason becomes subject to registration after the regular annual registration date in the year on or before which the owner of the vehicle is required under the motor vehicle registration laws of Indiana to register vehicles, the amount of the surtax shall be reduced in the same manner as the excise tax is reduced under IC 6-6-5-7.2. (b) The owner of a vehicle who sells or otherwise disposes of the vehicle in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a credit that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.2. (c) If the name of the owner of a vehicle is legally changed and the change has caused a change in the owner's annual registration date, the surtax liability of the owner shall be adjusted in the same manner as excise taxes are adjusted under IC 6-6-5-7.2. (d) The owner of a vehicle who moves out of state in a year in which the owner has paid the surtax imposed by this chapter is entitled to receive a refund that is calculated in the same manner and subject to the same requirements as the credit for the excise tax under IC 6-6-5-7.4. As added by P.L.146-2016, SEC.11. Amended by P.L.178-2019, SEC.18.

Ind. Code § 6-3.5-10-8.5 Expired

As added by P.L.114-2021, SEC.6. Amended by P.L.236-2023, SEC.74. Expired 12-31-2023 by P.L.236-2023, SEC.74.

Ind. Code § 6-3.5-10-9 Collections; remittance; report

Sec. 9. Not more than twenty-one (21) days after collecting the surtax, the bureau of motor vehicles shall remit the surtax to the fiscal officer of the adopting municipality that imposed the surtax. Concurrently with the remittance, the bureau of motor vehicles shall file a surtax 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.11. Amended by P.L.111-2021, SEC.6.

Ind. Code § 6-3.5-10-10 Surtax fund; use

Sec. 10. (a) The fiscal officer of an adopting municipality shall deposit the surtax revenues in a fund to be known as the "municipal surtax fund". (b) An adopting municipality may use the surtax revenues that the adopting municipality receives under this section: (1) to construct, reconstruct, repair, or maintain streets and roads under the adopting municipality's jurisdiction; or (2) 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.11.

Ind. Code § 6-3.5-10-11 Estimate of revenues

Sec. 11. 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 surtax revenues to be received by the adopting municipality during the next calendar year. The adopting municipality shall include the estimated surtax revenues in the adopting municipality's budget estimate for the calendar year. As added by P.L.146-2016, SEC.11. Amended by P.L.218-2017, SEC.28.

Ind. Code § 6-3.5-10-12 Service charge

Sec. 12. The following, as applicable, may impose a service charge of fifteen cents ($0.15) for each surtax collected under this chapter: (1) The department. (2) The bureau of motor vehicles under IC 9-14-8-3. As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, SEC.13.

Ind. Code § 6-3.5-10-13 Violations; offense

Sec. 13. (a) The owner of a vehicle who knowingly registers the vehicle without paying the surtax 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 surtax imposed under this chapter with respect to that registration commits a Class B misdemeanor. As added by P.L.146-2016, SEC.11. Amended by P.L.256-2017, 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