Council Democrats lack votes needed to override Hogsett veto

Democrats on the City-County Council are shy of the 17 votes needed to override Mayor Joe Hogsett’s veto of a tax hike on vehicle registration fees.

The council’s Democratic leadership, which supports the increases, sent an unsigned press statement indicating their caucus remains divided.

“Let us be clear: no one wants to ask residents to pay more,” the Aug. 5 statement reads. “Supporting the wheel tax was not an easy decision, but leadership often requires making difficult choices when they are necessary to protect our city’s future.”

The council still plans to vote on overriding the veto at its Aug. 10 meeting. Council President Maggie Lewis, a westside Democrat, did not return a request for comment.

The 19 Democrats on the 25-member council are split on whether to increase vehicle taxes in order to access state funding to repair Indy’s battered roads. 

Four Democrats are siding with the six Republicans on council against the tax increase. Several have said their constituents can’t afford it.

Mirror Indy reached out to the four Democratic holdouts.

• Councilor Rob Gibson, who represents parts of the northeast side, said he remains “steadfast” against any tax increases in 2027. He would consider revisiting the idea “when the economy gets better.”
• Councilor Crista Wells, who represents parts of the west side, said she would consider a smaller tax increase but can’t support it in its current form.
• Councilor Brienne Delaney, who represents parts of the north side, said she’s “continuing to listen to constituents and discuss this with colleagues” and is “hopeful a compromise will emerge from these conversations.” 
• Councilor Frank Mascari, a southside Democrat, did not respond to a request for comment.

The proposal would raise the county’s vehicle excise tax from around $20 per vehicle to a flat fee of $100. It would also increase the county’s wheel tax, which applies to buses, recreational vehicles and large trucks, to $240.

The increases, which would take effect in 2027, would allow the city to raise enough money to access an additional $50 million in state road funding. 

The Republican-controlled Indiana General Assembly passed legislation last year that allows the city to access that funding, so long as they come up with “new revenue” to put toward road funding.

The council voted 14-10 last month to pass the vehicle tax increase, but Hogsett vetoed the measure 10 days later. Councilor Dan Boots, a Democrat, was not present for the vote but said he supports the rate increase.

That leaves Democrats two votes shy of the 17 votes needed to override a veto.

Councilor Andy Nielsen, an eastside Democrat who crafted the vehicle tax increase proposal, said he’s continuing to reach out to other councilors.

“We’re working this thing to the very end,” Nielsen said. “I look forward to the vote and am confident that we will get the final two votes necessary to override the veto.”

Is tax increase necessary?

Opponents have contended that a tax increase isn’t required to access the $50 million in state road funding.

The state law that made the funding available was authored by Rep. Jim Pressel, a Republican from northern Indiana. It includes language that says Indianapolis can access the money by coming up with matching funds, “all of which must be new revenue.” 

If the city can’t meet the match, the funding goes away permanently.

But does “new revenue” mean new taxes? It depends on who you ask.

Nielsen has said the “legislative intent” of the bill was to get Marion County to raise taxes.

Pressel did not return a request for comment.

Hogsett’s plan for accessing the funding in 2027 involves pooling money from a number of different sources including income tax revenue and stormwater fees. In subsequent years, the city would identify “budget efficiencies and growth” to meet the match.

Democrats in favor of the tax increase say that’s not a sustainable plan. They note that while the match starts at $50 million in 2027, it increases to $70 million in 2028, $80 million in 2029, $90 million in 2030 and $100 million in 2031.

Other ideas also are on the table. Councilor Michael-Paul Hart, an eastside Republican, recently unveiled an alternate proposal that would not raise taxes. It would involve setting aside income tax revenue for roads, cutting the city budget by about $10 million per year and merging fire departments to attempt to cut costs.

It’s unclear whether the council will consider that proposal. 

Mirror Indy, a nonprofit newsroom, is funded through grants and donations from individuals, foundations and organizations.

Peter Blanchard covers local government. Reach him by phone or Signal at 317-605-4836 or pe*************@********dy.org. Follow him on X @peterlblanchard.

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