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Indy Chamber Calls For Commuter Tax

More than 150,000 non-resident workers commute to Indianapolis for work every day.

If you live outside Marion County and commute to Indianapolis for work, you might soon be paying more taxes.

Indianapolis Chamber of Commerce officials announced Monday that proposing a commuter tax will be one of their top priorities for next year’s legislative session.

Indy Chamber CEO and President Michael Huber says the way that Indiana collects taxes to pay for local government is different from other states. While the income taxes of other states’ residents are determined based on their places of employment, Indiana’s income taxes are determined by a Hoosier’s place of residence.

In Indiana’s situation, Huber says a commuter tax is necessary.

“In a perfect world, there would be a re-allocation of existing taxes, but I just don’t think that is likely to happen,” Huber said.

Huber says more than 150,000 non-resident workers come to Indianapolis every day, but there has never been a revenue stream to pay for the additional services, which include wear and tear on the city’s roads.

“A non-resident income tax, while it is not a perfect solution, it would at least provide some relief to Indianapolis so it could provide more of the public safety and transportation, infrastructure resources necessary to deal with that influx of workers,” Huber said.

Opponents of the commuter tax say it would be unfair to non-residents because non-residents don’t have the ability to vote in the city or determine how tax money is spent.

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