Carlisle to join cities adding extra $5 vehicle registration tax

Starting next year, Carlisle residents will be paying a little more to renew their license plates.

Carlisle Village Council recently approved an ordinance to enact a $5 local permissive tax when village residents renew their annual motor vehicle registration to raise funds for street and highway work.

Ryan Rushing, village finance director, said in a report that the new tax will raise an additional $30,000 per year to be used only for local roads and streets. The new tax will go into effect Jan. 1, 2021.

Ohio House Bill 62 created two new motor vehicle license fee options for municipalities and townships. Motor vehicle license fees are paid at the time of the annual registration with the Ohio Bureau of Motor Vehicles or by deputy registrars.

By enacting this ordinance, an additional $5 license fee would be added at the time of registration in 2021, which is also when Carlisle would begin receiving the additional revenue from the new tax.

Rushing said due to the lack of alternative revenue sources, such as a dedicated road levy, the village is 100 percent dependent on the revenue options provided by the state of Ohio: through the auto and truck gas tax and motor vehicle license fees.

“With the increase in residential development and the corresponding increase in population and use of our public roadways, the Village’s infrastructure has significant increased wear and tear,” he said in his report. “This is compounded by the fact that if the Village becomes a City after the 2020 Census, staff will be responsible for the 100% maintenance of SR 123 without receiving any additional revenue for said purpose.”

Rushing said it was vital that council enacts this additional revenue source as it is the only option the village currently has to receive the additional resources needed to help maintain the roads and highways of the village.

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