Mayor Joe Hogsett has vetoed a Democrat-led proposal to raise the city’s taxes on registered vehicles. In a video posted to social media, the mayor said he can’t support a measure that “adds to the increased financial burdens facing Indianapolis residents.”
It’s the first time Hogsett, also a Democrat, has exercised his veto power during his 10-year tenure.
“Over the course of the last month, my office has heard from older adults on fixed incomes who say this increase is simply not doable,” Hogsett said in the 2-minute video posted on social media July 16 explaining his justification for the veto. “When neighbors tell me rising costs are forcing hard decisions, it is my responsibility to listen.”
The City-County Council voted 14-10 on July 6 to increase both the city’s wheel tax and vehicle excise surtax.
The council proposed the increase to access an additional $50 million in annual road funding from the state. That money can only be accessed if the city comes up with a $50 million match — an amount that will increase in subsequent years while the state’s share remains unchanged.
Hogsett said he’s “confident” the city can make the match without raising taxes, but councilors have expressed doubts about the city’s ability to raise the necessary revenue in the coming years.
Hogsett has said his plan would rely on funding already allocated in the 2026 and 2027 budgets, as well as money from stormwater fees and supplemental income tax funding from the state.
But according to the state law that opened the door for Indy to receive the additional state funding, the city would need to raise more than $50 million in subsequent years to receive the state match: $70 million in 2028, $80 million in 2029, $90 million in 2030 and $100 million in 2031.
Councilor Andy Nielsen, an eastside Democrat who led the vehicle tax proposal, said Hogsett’s proposal “is not really a plan” but a “one-year patch.”
The council can override the mayor’s veto with support from a two-thirds majority, which would equate to 17 out of the 25 councilors.
Council President Maggie Lewis, a Democrat who voted in favor of the tax increase, said the full council will vote on whether to override the veto. That vote could come as early as Aug. 10, which is the next time the council is scheduled to meet.
2 Democrats short
All six Republicans on council were opposed to the tax increase. One Democrat was absent, meaning it seems likely that at least one and maybe two Democrats would need to change their vote in order to override the veto.
Councilor Dan Boots, a northside Democrat, was not present for the July 6 vote but has indicated his support for the tax increase in public remarks. Boots could not be reached for comment for this story, but has previously said that Hogsett’s plan is “a scheme that he hopes you buy.”
Four Democrats voted against the tax hike: Brienne Delaney, Ron Gibson, Frank Mascari and Crista Wells.
Wells, who has called on Hogsett to resign for his handling of sexual misconduct allegations against his former chief of staff, Thomas Cook, said she supports Hogsett’s veto.
“I think he should step down today,” said Wells, “but I also think he should vote down this wheel tax increase. Both can be true.”
Wells added, though, that she would support a smaller tax increase in subsequent years. She believes now is the wrong time.
The other three Democrats who voted against the tax increase did not respond immediately to a request for comment.
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Peter Blanchard covers local government. Reach him at 317-605-4836 or pe*************@********dy.org. Follow him on X @peterlblanchard.
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Peter Blanchard