County council adopts vehicle taxes 

Wayne County residents will pay between $7.50 and $212.60 in new taxes for each of their cars, motorcycles, trucks and trailers beginning next year.

With a 5-2 vote, Wayne County Council enacted local option highway user taxes Aug. 25 that will provide tax money and, beginning in January 2027, access to the state’s lane-mile distribution for road funding. Jeff Cappa and Misty Hollis voted against the tax, citing concerns about Richmond residents possibly being taxed by the county and city for their vehicles. Richmond, because it has more than 5,000 residents, has the option of enacting its own LOHUT taxes.

“I am not going to put my constituents that I represent in my district in a double-tax situation,” Cappa said during an Aug. 20 public hearing. Council voted 4-3 in favor of the LOHUTs that night, but, because the vote was not unanimous, considered the issue again Aug. 25, when merely a majority vote was required for passage.

Beth Leisure said Monday that even though she remains concerned about the possibility of double taxation, she believes the county has no choice but to move forward with the tax.

Hollis hoped to delay the tax so the legislature could consider eliminating the possibility of residents being taxed twice for their vehicles. “I don’t feel like we have to right now, today,” Hollis said in explaining her vote against approval.

Council members Barry Ritter, Max Smith, Leisure, Gary Saunders and Cathy Williams all voted to approve the new taxes.

Council passed the maximum 20% excise tax surcharge with a $7.50 minimum for passenger vehicles, small trucks, motorcycles, mopeds and small trailers, and a $40 wheel tax on large trucks, large trailers, buses and RVs that’s half the maximum. The Bureau of Motor Vehicles will collect the taxes when residents register their vehicles, and after taking a fee, the money will return to the county, Richmond and the county’s towns for maintenance of roads and bridges.

“What we’re talking about here is a mechanism to allow us to continue to provide the safe, quality highway system, which includes the bridges, that we’re all used to and want to have going forward,” said Smith, council’s president. “If we ever cut back our funding and let the quality of the highway system and the bridges deteriorate, there will never be enough money to get that back in shape. Say goodbye to good roads.”

Brandon Sanders, the county engineer, said residents would pay the $7.50 minimum on 66% of Wayne County vehicles falling under the surcharge categories. The excise tax is based on a vehicle’s original value, and it decreases each year the vehicle ages. The maximum surcharge is $212.60 for new vehicle costing more than $42,500.

Based on 2024 vehicle data, Sanders estimates the county’s LOHUT taxes would generate $1,612,503 if implemented in 2026; however, the county shares that with Richmond and 13 towns. The county would receive 48% and Richmond 40%; the towns would split the remaining 12%.

Mayor Ron Oler said the city would see how much LOHUT money it receives from the county action before considering its own LOHUTs. The city can enact a surcharge between $7.50 and $25 (it’s not eligible to enact a percentage) and a wheel tax between $5 and $40. By implementing LOHUT taxes, the city also would become eligible for funding based on its 296 lane miles of roads. 

“I hate to make decisions based on what the city might do,” Leisure said. “It’s not that I don’t know that we need it.”

Wheel tax discussions have occurred before at the county level; however, none gained traction. The difference this year is that the state legislature changed how it will distribute highway funds to counties and municipalities. Legislators decreased funding for the Community Crossings matching grant program that has netted the county $4,210,976.19 since 2016 and created a new distribution based on lane miles. The eligibility requirement for lane-mile funds, which will first be distributed during January 2027, is having enacted a wheel tax.

“I’m actually a little surprised that there even would be any debate about passing this; this is so obvious,” Stephen Hunyadi said during the public hearing. “You folks would be irresponsible not to pass these taxes.”

Nick Dunlap said that the county clearly needs the new revenue.

“I know taxes are unpopular. I know people are frustrated,” he said. “I’m very frustrated by it, but roads and bridges don’t repair themselves.”

Wayne County has 1,370 lane miles that would bring an initial payment of between $1.5 million and $2.1 million, according to county estimates. Payment size depends on how many counties and municipalities enact LOHUTs prior to the Sept. 1, 2026, deadline currently set for eligibility to receive a 2027 payment.

Even with the LOHUT and lane-mile money, the county will not cover its expected shortfall for road and bridge projects. Hollis also referenced that as a reason for her no vote.

“We have the resources to get through 2026 to cover the bridge fund, so until we know what the legislature can do to fix this, we can go one more year,” she said. “It’s still not solving our problem either, because we’re still short $2 million.”

Access to the lane-mile funds changed the dynamics of implementing LOHUTs. Plus, Smith said that the state takes $15 from each vehicle registration. Without the LOHUT taxes, Wayne County residents’ money would be used elsewhere.

Opponents of the wheel tax speaking during the public hearing pleaded with council not to give in to the state by taxing them more. 

“I’m not going to pay the blackmailer, and I don’t think you should, either, because that’s what’s happening to us,” Mary Chaney said. “Once they do it, they’re going to keep doing it.”

Rod Weiss thought residents should pay the same rate whether their vehicles are new or old. The county initially considered a flat fee for the excise surcharge before switching to the 20% value, thinking that residents with older, lower-cost vehicles could least afford the tax.

“I know there’s going to have to be a wheel tax, but I don’t agree with the percentage value on a vehicle,” Weiss said.

WCTV broadcast and recorded the video of the August 25 council meeting: