The Indianapolis City-County Council approved a measure Monday night to increase income taxes and create a dedicated fund for transit improvements.
The Council voted 17–8 in support of the Proposal No. 3, which will add an additional income tax of 25 cents on every $100 beginning Oct. 1. The new tax is expected to raise $54 million annually, which will then be appropriated to IndyGo through the Council’s annual budget process.
Before coming before the Council, the measure appeared on the ballot in November 2016, where it saw support from more than 59 percent of Marion County voters.
“Last year, a significant majority of Marion County voters made an important statement about the future of mass transit in Indianapolis and I appreciate the Council’s decision to act according to the will of the people tonight,” Indianapolis Mayor Joe Hogsett said in a statement. “Once this ordinance is signed, I look forward to ensuring that this historic investment in city infrastructure will be transformative for our future.”
Lauren Day, IndyGo’s manager of marketing and communication, said the Council vote has given IndyGo the certainty needed to go ahead with plans to hire more than 300 bus operators, mechanics and administrative employees.
In addition to paying for more employees, which will allow IndyGo to expand the frequency and availability of its buses, the new transit funds will be used to buy new buses, revamp bus stops and more.
Council President Maggie Lewis said the vote marked a historic day for the city.
“Improving our transit system will have a positive impact on our families for decades to come and we were all here, working alongside one another to make sure our children and our children’s children will have fair and equal access to jobs, education and health care,” Lewis said.
