Hammond residents may soon have to pay a city wheel tax. The city council is considering an ordinance that would implement the tax in January, 2026.
Mayor Tom McDermott Jr. says Hammond has been able to get by without one until now by using casino revenue. But he says that's taken a major hit since the opening of Gary's land-based casino.
"We've gotten to the point in Hammond now where the amount of maintenance we're doing on our roads is abysmal," McDermott told the city council Monday. "This year, it'll be about a half a million dollars, and that's not enough."
McDermott said the wheel tax would bring in an estimated $1.5 million a year for roads. He said many nearby communities already have a local wheel tax, with Gary, Munster, Crown Point and Valparaiso using the exact same structure.
However, the revenue potential may be limited by the fact that some people who move to Hammond fail to get an Indiana license plate, preferring to keep their cheaper Illinois plates. McDermott said the city does try to enforce the issue, but it's already an uphill battle.
"There is a difference between what they charge in Illinois and what we charge, and that difference is going to get greater under this scenario, which will encourage even more, I acknowledge," McDermott noted.
Council members suggested that residents report the issue by calling 311 or attending a neighborhood crime watch meeting.
Still, council member Dave Woerpel said Hammond is running out of options to fund road repairs. He said he got three complaints from residents earlier Monday about road conditions.
"When there's no money, there's no money, and, I mean, what am I supposed to tell the residents?" Woerpel asked.
At the same time, council member Barry Tyler Jr. said the city is looking for all available funding opportunities, including matching grants. "This is the balance, and even with all those other measures, we still need to do this on top of that to be able to continue with these infrastructure repairs," Tyler said.
Residents will have a chance to weigh in on the proposed tax during a public hearing October 15, before council members make a final decision.
It wouldn't be the only local tax Hammond has added this year. The city council has also adopted a one-percent food and beverage tax to pay for a West Lake Corridor station in Downtown Hammond and the expansion of the Hammond Sportsplex.
