Sec. 2. (a) The fiscal body of an eligible municipality may, subject to subsections (b) and (c), adopt an ordinance to impose a municipal wheel tax in accordance with this chapter on each vehicle that:

(1) is included in one (1) of the classes of vehicles listed in section 3 of this chapter;

(2) is not exempt from the wheel tax under section 4 of this chapter; and

(3) is registered in the eligible municipality.

     (b) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the fiscal body concurrently adopts an ordinance under IC 6-3.5-10 to impose the municipal vehicle excise tax.

     (c) The fiscal body of an eligible municipality may not adopt an ordinance to impose the wheel tax unless the eligible municipality uses a transportation asset management plan approved by the Indiana department of transportation.

     (d) The fiscal body of an eligible municipality may impose the wheel tax at a different rate for each of the classes of vehicles listed in section 3 of this chapter. In addition, the fiscal body may establish different rates within the classes of buses, recreational vehicles, semitrailers, trailers, tractors, and trucks based on weight classifications of those vehicles that are established by the bureau of motor vehicles for use throughout Indiana. However, the wheel tax rate for a particular class or weight classification of vehicles may not be less than five dollars ($5) and may not exceed forty dollars ($40). The fiscal body shall state the initial wheel tax rates in the ordinance that imposes the tax.

     (e) Subject to subsection (f), a wheel tax imposed by this chapter for a vehicle is due and shall be paid each year at the time the vehicle is registered.

     (f) If the municipal wheel tax imposed by this chapter was not paid for one (1) or more preceding registration years, the bureau may collect only the municipal wheel tax imposed by this chapter for the:

(1) registration year immediately preceding the current registration year;

(2) current registration year; and

(3) registration year immediately following the current registration year.

As added by P.L.146-2016, SEC.12. Amended by P.L.256-2017, SEC.16; P.L.178-2019, SEC.20.