Ellettsville residents to pay wheel tax next year 

Ellettsville residents must pay a new tax on their vehicles next year.  
 
The town council adopted a wheel and excise tax to be used to improve local roads. Owners of cars, trucks, motorcycles and other smaller vehicles will pay an excise tax of $15 per plate. Owners of larger vehicles such as trailers, semis and buses must pay a wheel tax of $5 per plate.  
 
The council expects to bring in more than $89,000 with the new ordinance. The tax takes effect Jan. 1, 2026. The revenue goes to the Ellettsville Streets Department for road repair and maintenance.  
 
The tax ordinance was passed at a council meeting on Aug. 25. 
  
Council member William Ellis said at the meeting he typically would not support a tax like this, but funding for roads have shrunk over the years.  
 
Ellis said he’s considered alternatives and asked people who oppose the tax to come up with an idea that also brings in revenue. He said he hates that the tax stacks on to Monroe County’s wheel tax, and he acknowledges some residents don’t want to pay for the town’s growth.  
 
“But, we have to protect, for our residents, our roads and our critical services,” Ellis said.  
 
The tax also makes Ellettsville eligible for Indiana’s Community Crossings Grant program, which would provide additional funding for the town’s roads.  
 
“This wheel tax is necessary for us to get grants from a larger fund,” Ellis said. “Where does that grant come from? Tax money you’ve already paid to the state.” 
 
Town manager Mike Farmer said at the meeting the tax is as low as possible. He said the board could have gone with a higher wheel tax, but it “wanted to go with the lowest numbers we could.”   
 
Drivers will pay the tax during yearly registration with the ​​Indiana Bureau of Motor Vehicles.