Chesterton residents will likely pay more for their motor vehicle license plate registrations next year as the Town Council is poised to raise the fees with a wheel tax.
The council on Monday gave a first reading to an ordinance that would raise the motor vehicle excise tax and the municipal wheel tax. The final vote would come at the next meeting on April 27.
What it would mean for residents is that they would pay $25 more for a passenger vehicle — the motor vehicle excise tax. Those owning commercial vehicles, like trucks or buses, would see a $40 increase with their wheel tax. Trailers and recreational vehicle owners would pay $12.50 more.
The Chesterton Town Council has long opposed increasing what is commonly known as the “wheel tax.”
But Senate Enrolled Act 1, approved last year, which reduces property tax revenue for municipalities, has prompted Chesterton Town Council members to change their minds.
Dan Moy, assistant street superintendent, also noted that there is a new requirement that towns have a “wheel tax” in place to qualify for annual street funding from the state.
The wheel tax increase would generate an estimated $344,732 per year, which could only be used for street paving.
Street Superintendent John Schnadenberg said that Chesterton is “definitely falling behind” on maintaining its 80-mile network of residential streets. He said the town should repave 5 miles per year, but can only annually afford to do 1 mile.
Moy said that almost all of the surrounding neighborhood communities have added wheel taxes. Portage set its fee in 2016, Valparaiso in 2024 and Michigan City started this year.
Ray Griffith, a Chesterton resident, said that the new fee would be unfair to him as the owner of trailers and antique cars.
Councilwoman Jennifer Fisher, R-5th, said that if the town didn’t raise the wheel tax, there would be a possibility that it would miss out on future state funding to maintain streets.
“It’s necessary. It’s not something that came lightly for this council,” Fisher said.
The council also heard that the town is applying for an Indiana Regional Economic Acceleration and Development Initiative (READI) grant in cooperation with the Duneland YMCA, Chesterton Art Center and the Chesterton Branding and Leadership Corporation.
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The grant would promote a linkage between the YMCA, Art Center and the downtown, and highlight the assets within the newly created Chesterton Trackside Arts District, said Assistant Town Engineer Matt Gavelek.
A prominent feature of the plan is an 8-foot-wide multi-use pathway connecting the YMCA to the downtown. Calumet Road would also have a new streetscape.
The proposed path would go east down Morgan Avenue to South 4th Street, north of Indiana Avenue, and then north on South 3rd Street to Broadway and on to Calumet Road.
Gavelek said that there would be wayfinding signs along the path that would highlight art attractions and the town’s history.
The YMCA’s part of the plan also seeks funds to renovate the old auditorium at the high school and to develop an outdoor pavilion, also known as an airnasium.
Council President Erin Collins, D-2nd, and Fisher expressed their excitement over the plan.
“There are some really cool ideas here, and I love the idea of expanding the sidewalk along Calumet and open space there. It would be a great improvement,” Fisher said.
Jim Woods is a freelance reporter for the Post-Tribune.