EVANSVILLE, Ind. (WFIE) - The City of Evansville announced it will pursue a municipal wheel tax to provide a stable, dedicated source of funding for road and street improvements.

According to a press release, this tax is a response to long-standing infrastructure challenges and one of the most frequent concerns raised by city residents.

Officials say in 2026, Evansville is projected to lose millions of dollars in property tax revenue due to changes in state law.

During the same legislative session, Indiana passed House Enrolled Act 1461, requiring cities to adopt the ‘Wheel and Excise Tax’ in order to qualify for Lane Mile Distribution Dollars, a new, guaranteed state funding stream for local roads.

The press release states by adopting this tax, Evansville can secure its fair share of

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