Michigan City officials are exploring the implementation of a municipal wheel tax to address ongoing road funding challenges, as discussed during a recent workshop on March 14, 2025. The proposed wheel tax could generate an estimated $667,000 for the city, providing a crucial financial resource amid uncertainties surrounding riverboat revenue, which has historically supported local projects.

City leaders highlighted the necessity of this tax, particularly in light of the competition and changing business landscape influenced by the COVID-19 pandemic. The reliance on riverboat funds is no longer seen as a stable solution, prompting the need for alternative funding mechanisms like the wheel tax.

However, concerns were raised about the potential for double taxation if both the city and La Porte County adopt similar taxes. Currently, La Porte City has had a wheel tax since 2016, and if the county follows suit, residents could face increased financial burdens. City officials are seeking clarity on whether municipalities can be exempted from county-level taxes to avoid this overlap.

The city plans to invite Baker Tilly, a financial consulting firm, to provide further insights and detailed information on the wheel tax options in an upcoming council meeting. This step aims to ensure transparency and informed decision-making as the city navigates its funding strategies.

As discussions continue, the city council emphasizes the importance of addressing these funding challenges effectively, ensuring that residents are not unfairly impacted by overlapping tax structures. The outcome of these deliberations will be pivotal in shaping Michigan City's financial future and its ability to maintain and improve local infrastructure.