 Indiana local governments need almost $1 billion more than they currently receive to maintain and preserve the condition of the roads and bridges (IndyStar). Over 80% of the state revenue for roads comes from fuel taxes. Indiana Department of Transportation (INDOT) has noted that as cars get more fuel efficient, electric vehicles are becoming more popular, and as the cost of construction materials inflates, INDOT has already lost and will continue to lose revenue. To help combat this loss, the Indiana House of Representatives has introduced House Bill 1461. The bill introduces many ideas to get more funding for road construction and upkeep. The bill introduces ideas such as a new tax on food deliveries and rideshares, instituting more toll roads, and special taxes for Indianapolis (IndyStar).
A New Tax on Food Deliveries and Rideshares: Counties will have the option to administer an extra fee on food delivery in order to funnel a few extra million dollars toward road repairs. An analysis of the bill estimates that if all counties were to adopt this fee in 2026, local road revenue could potentially increase between $150 million and $190 million (IndyStar). The bill exempts smaller businesses making less than $1 million in sales annually, and delivery services or rideshares that facilitate less than $100,000 in transactions the previous year. This bill is really targeted toward deliveries made by companies such as DoorDash and Uber. A spokesperson from DoorDash estimated that if this tax were to be implemented statewide, there would be an additional $28 million paid in taxes, and merchants could lose more than $49 million due to lost business (IndyStar). There have been some worries about the fees affecting those of lower income who have a fixed budget and rely on these services for groceries and to get to work. The author of the bill, Jim Pressel, heard these criticisms but is skeptical that the burden would be that cumbersome compared to the fees already tacked on. Institute Toll Roads Indiana currently has one toll road in northern Indiana. Former governor Mitch Daniels leased that toll road in 2006 to a private company for almost $4 billion. INDOT could decide to lease a new toll road for another large sum of money, or it could contract with a concessionaire and share revenue. Fiscal analysis projects that tolling could result in an extra $850 million a year in revenue on average and $32 billion over a 22-year period (IndyStar). The major road funding bill of 2017 (HB 1002) gave INDOT the ability to pursue new toll roads with the approval of the governor and bypassing General Assembly approval. House Bill 1461 would remove two restrictions making it easier to implement toll roads; first, INDOT would not have to do a feasibility study beforehand, and second, if the agency applies for the requisite waiver from the federal government by July 1, it can toll lanes anywhere. Like the tax on food deliveries and rideshares, there have been some critiques. The president of the Indiana Motor Truck Association, Gary Langston, called tolling an “inefficient and inaccurate process” compared to fuel taxes and predicted the administrative costs to be higher. (IndyStar). Langston argued that these tolls would hurt the trucking industry as fuel-efficient trucks are not near being commercially available. He argued that the main proponents of tolling discuss how it is important to make all who use the roads pay for them and that fuel is going away, but none of those factors apply to the trucking industry. On the other hand, some argue that the benefit of tolling is to help Indiana reap the benefits of drawing out-of-state workers and travelers and it is important that they pay their fair share. There has been some research done on the tolling and its affordability when it comes to people experiencing low-income or economically disadvantaged groups. There has been a study done by the Oregon Toll Program that had some important takeaways such as the fact that tolls could be a more equitable way of funding transportation. The Federal Highway Administration (FHWA) has said that without tolls, the costs of providing peak-period highway service are borne by more people than those who are using the highway. Tolls can be less burdensome to low-income drivers than systems that are based on taxes, such as car-registration tax, sales tax, and fuel tax. This is because many low-income drivers, for example, drive older vehicles that are not as fuel-efficient as newer models and pay higher fuel taxes for each mile driven. Another important takeaway that the study discussed was that people of all incomes travel at all times, but the research suggests that middle- and higher-income people are more likely to travel at the busiest times and thus are more likely to pay tolls. There are also concerns discussed in the study such as the impact on workers who are receiving lower pay, the barrier of electronic payment, and the cost and process to obtain a transponder. Tolls may make it difficult or too expensive for lower income workers to get to their jobs. Most entry level jobs may have readily available access to public transit, and even if there are those transit services, work hours are during off-peak times, making public transit use less appealing as an option. Not to mention, many low wage workers need to drive to retain their jobs. There have been efforts by other departments of transportation such as the Oregon Department of Transportation (ODOT) to establish income-based tolls. The next concern with barriers to electronic payment is that tolls rely on cashless electronic payments. There are some households that do not have credit cards, bank accounts, or cannot afford large deposits so that they may not be able to set up toll accounts, which may limit their use. To combat this, toll facilities are offering cash options for payments. Finally, the cost and process of obtaining a transponder can be a barrier. Most tolled facilities that use electronic toll collection offers discounts to those who register and use transponders. This is to encourage people to join into the system and lower the cost to monitor and enforce toll fees. However, for low-income drivers, the cost to purchase a transponder and pay monthly fees to maintain it can be a barrier. Additionally, distrust of the department of transportation and government systems can be a barrier for trust in signing up for an electronic transponder that follows where people drive. To address the financial impact on people and workers who are experiencing low-income, toll programs offer credits and rebates such as waving the monthly registration fees, free transponders, and credits for a certain number of trips taken per month. Many also argue that the administrative costs will outweigh the revenue gained from the tolls. There have been some tolls that are successful and generate revenue, while there are some that struggle to break even. Federal policy encourages the use of tolling to attract private investors into highway and bridge construction, but numerous private toll roads have been financial failures. The administrative costs of toll collection are much higher than the cost of fuel tax collection. According to a CBS report, even with extensive use of electronic tolling, collecting highway tolls cost between 8% and 13% of the amount collected. Special Taxes for Indianapolis: House Bill 1461 would give Indianapolis the option to put a referendum question to Marion County voters on whether to raise property tax to pay for road work. This bill would also triple the size of the wheel and excise taxes that Marion County could choose to levy on those who register vehicles in the county. The city is open to the idea of the property tax referendum but is opposed to increasing its wheel and excise taxes. All of these are just ideas in order to fill the funding gap to maintain and improve roads in Indiana. These all have their advantages and their critiques that need to be worked out. As of right now, the bill has had a first reading and has been referred to the Committee on Roads and Transportation. House Bill 1461 is just one of many bills that the Chamber is following right now.
1 Comment
 We're roughly a month into the legislative session and here at the Chamber we've been working hard to keep track of a number of bills.
One of the biggest topics has been property taxes. We've been tracking upwards of 15 separate pieces of legislation having to do with property taxes and assessments. While most are still awaiting a hearing, SB 1 was recently heard in committee. Lawmakers have been trying to thread the needle between providing much-needed relief to homeowners without decimating municipal revenues. It seems that striking such a balance is proving to be quite difficult. An article from WTHR provides a good synopsis of the competing interests. It is still quite early in the session and there is time yet for legislators to come up with a solution that works for all parties. We'll keep tracking this legislation to see what they come up with. Not only are we following legislation, but we are, when necessary, speaking on legislation as well. Our O'Neill Advocacy Fellow Josh Levesque testified in front of the House Ways and Means Committee in support of HB 1080. This bill, authored by Rep. Peggy Mayfield, would allow Ellettsville to set up its own food and beverage tax to help keep pace with the recent growth the community has seen. Other local legislators have also seen some movement on their legislation. Sen. Koch's SB 4 deals with regulations around long haul water pipelines. It has passed the Senate and is now awaiting action in the House. Sen. Yoder helped to author SB 14 which loosens regulations around vegetable gardens in residential districts. This bill has also passed the Senate and is awaiting action in the House. Rep. Hall's HB 1245 has made its way through committee and should soon face a vote in the full House. This bill would allow certain counties with state parks to impose a surcharge of not more than $1 in addition to gate fees. The revenue generated could be used for public safety and infrastructure improvements. Other areas that have seen movement include teacher compensation, restricting minor access to social media, and reducing chronic absenteeism. Many other topics are yet to be addressed, but with 2 months left in the session, a lot can still happen.  Blue Zones are places around the world with the healthiest, longest living populations. The phrase was coined by Dan Buettner in 2004, who was a National Geographic Explorer and Fellow. Buettner and his team traveled the world in search of communities where people not only lived longer but also enjoyed a high quality of life in their old age. After all their travel and analyzing demographic data, they named five regions that stood out for their extraordinary longevity. The five regions include Okinawa, Japan, Nicoya, Costa Rica, Ikaria, Greece, Sardina, Italy, and Loma Linda, California. These are all areas where there is a high concentration of centenarians and low rates of chronic diseases. The studies that Buettner and his team have done revealed that genetics and lifestyle factors have played a role in their longevity. Some lifestyle factors involved include a plant-based diet, exercise, and strong social connections. (Blue Zones).
Blue Zones are beneficial in many ways such as encouraging better eating habits with plant-based and whole grain diets, increased exercise habits such as walking and manual labor, and emphasizing the importance of having strong social and family connections. Main Ideas and Benefits of the Blue Zone Diet:
Critiques of Blue Zones: While many see the Blue Zone lifestyle as a way to live longer and promote a healthier lifestyle, there are several contrasting opinions by people who feel the lifestyle may be overhyped or inaccurate.
 As we progress through 2025, the Greater Bloomington Chamber of Commerce remains steadfastly committed to being the voice of business in our community. Our legislative agenda reflects the evolving needs of our diverse business landscape while addressing the challenges and opportunities that lie ahead.
## Why Your Voice Matters The business community's collective voice is more crucial than ever in shaping policy decisions that affect our local economy. Through active engagement with legislators and policymakers, we ensure that the interests of the area's business community are heard and considered in decisions that impact our daily operations and long-term growth. Our advocacy efforts go beyond simply responding to legislation – we proactively work to create an environment where businesses can thrive. This means addressing workforce development, infrastructure improvements, and regulatory frameworks that promote innovation while maintaining appropriate oversight. Key Priorities for 2025 This year, our legislative agenda focuses on several critical areas: Workforce Development and Education** We're advocating for stronger partnerships between educational institutions and businesses to create pipeline programs that address our workforce needs. This includes support for vocational training, apprenticeship programs, and initiatives that help retain talent in our region. Infrastructure and Economic Growth** Our agenda emphasizes investments in critical infrastructure, including enhanced broadband connectivity and transportation improvements like the Monroe County Airport. We recognize that modern, reliable infrastructure is essential for business growth and community development. Business-Friendly Policies** We're working to streamline regulations while maintaining necessary protections. This includes advocating for tax policies that encourage business growth and investment in our community, while ensuring we maintain essential services. Quality of Life Initiatives** Understanding that a vibrant community attracts and retains talent, we're supporting initiatives that enhance Bloomington's livability. This includes backing projects that improve housing affordability, expand recreational opportunities, and strengthen our cultural amenities. The business landscape is changing rapidly, and our advocacy must evolve alongside it. New technologies, shifting workforce demographics, and changing consumer preferences require us to be forward-thinking in our approach. We must anticipate challenges and opportunities rather than simply react to them. Our commitment to evolution means: - Regularly consulting with members to understand emerging needs - Staying informed about trends that could impact our local economy - Building flexible frameworks that can adapt to changing circumstances - Fostering innovation while maintaining our community's unique character Looking Forward As your Chamber of Commerce, we remain dedicated to representing your interests and creating an environment where businesses can succeed. Our 2025 Legislative Agenda is not just a document – it's a roadmap for creating positive change in our community. We encourage all members to engage with our advocacy efforts. Your insights and experiences help shape our priorities and strengthen our collective voice. Together, we can ensure that Bloomington remains a thriving place to do business for years to come. Remember, our strength lies in our unity and shared vision for Bloomington's future. We invite you to join us in this important work by participating in our advocacy committees, attending our policy events, and sharing your perspectives on the issues that matter most to your business. Thank you to all who made it to our Legislative Preview last Friday at the Hilton Garden Inn. We had a great turnout and members posed thought-provoking questions to Reps. Hall, Mayfield, and Pierce. If you missed the event, you can catch it on CATS here.
I'm currently in bill tracking mode and I'm following a number of bills that have been filed at the Statehouse. Here are some that have stood out so far: Property Tax Bills
I'll keep tracking these bills and many more as they make their way through the legislature.  The 2025 legislative session is right around the corner. And, at least on my part, there is an element of uncertainty as to how it might shape out this year. This will be the first session under new governor Mike Braun who recently released his priorities. His lieutenant governor (Micah Beckwith), who will oversee Senate proceedings, has already made headlines. Senate Democrats have been rocked by scandal and leadership challenges. And, on top of all of that, Medicaid shortfalls and an end to COVID-era stimulus funding mean we might see some belt-tightening and a smaller budget than in years past.
Despite all of this, here are some topics where we might see some movement on this session:
The legislative session always provides ample opportunity for unexpected twists and turns. The Chamber Advocacy team will track these topics and whatever else may spring up during the 2025 session.  Bloomington Transit has announced the creation of Route 13, bringing much-needed service to areas including West Vernal Pike over the interstate to Park 48 and Ivy Tech. This historic route will provide the first-ever BT fixed-route bus service outside of city limits.
Per BT's press release: service will begin on Thursday, January 2, 2025. Buses will operate Monday-Friday. The first trip will depart from the Downtown Transit Center at 6:40 am and the final trip will return at 6:30 pm. There will be one trip per hour for a total of 12 trips per day. Information regarding timetables and a route map can be found here. The Chamber's own Christopher Emge had this to say about the announcement of the new route: "I want to express our profound appreciation for this landmark achievement in expanding Bloomington Transit service to Park 48. This expansion, forty years in the making, marks a crucial advancement for our business and educational community in Monroe County. Together, we're building a more accessible, connected, and prosperous community for generations to come." Businesses located along the route include Cook Medical, Berry Global, Singota Solutions, Simtra, and TASUS.  Overview of the Problem The rise of Airbnb, VRBO, and other short-term rental platforms has created notable challenges within housing markets. The increased prevalence of these rentals is tied to significant effects on housing prices, especially for renters and those looking to buy homes. Studies, including one from the Harvard Business Review, indicate that short-term rentals like Airbnb account for approximately 20% of the average annual increase in rent nationwide. Furthermore, research from the National Bureau of Economic Research and California-based universities reveals that a 10% increase in Airbnb listings correlates with a 0.42% rise in rents and a 0.076% uptick in house prices. These shifts emphasize the need for regulatory action to alleviate the strain short-term rentals impose on the housing market. While short-term rentals can bring economic benefits, such as boosting local tourism, they also drive up housing costs, reducing affordability for long-term residents. Regulatory strategies are essential to reduce these negative impacts while balancing economic contributions. Potential solutions include tax policies, zoning laws, administrative codes, and, in some cases, an approach resembling a de facto ban on certain short-term rental operations. Potential Regulatory Solutions 1. Tax Policies Tax policies aim to curb the rise of short-term rentals and direct funds toward affordable housing projects. For instance:
2. Zoning Laws Zoning regulations can define legal areas for short-term rentals, setting boundaries on:
3. Administrative Codes In California, administrative codes help ensure that properties used for short-term rentals maintain a connection to long-term residency:
4. De Facto Ban Approach Some cities, such as New York City, have taken measures akin to a ban by placing strict occupancy limitations:
State-Specific Regulations Florida (SB 280) Florida’s Senate Bill 280 permits local governments to enforce short-term rental regulations through:
Indiana Indiana has explored regulations but has not yet enacted state-level controls on short-term rentals:
Conclusion With rising housing shortages in Indiana’s largest cities, adapting frameworks from other states could be beneficial. By implementing tailored regulations, Indiana has the potential to balance the interests of short-term rental operators with the need for affordable long-term housing.  Each year, we survey our members to gather feedback on the most important and impactful issues affecting their businesses at the local, state, and federal levels. We continually refine our surveys to focus on questions that help us track trends and gain insight into current events.
The time has come for the 2025 Issues Survey, and we greatly appreciate those who have participated in the past. Your input is essential, as the survey results play a key role in shaping our legislative agenda and guiding our discussions with elected officials. Members will soon receive an email with a link to complete the survey. Please complete the survey by November 12th to help us set our priorities for the upcoming legislative session.  The 2024 General Election is now only 48 days away. A lot has happened since our last Elect Connect event. The Primary Election may has determined which candidates we can now pick from for a range of offices up and down the ballot. Not to mention the fact that the race for President got quite a shake-up earlier this summer.
During my course of study in Bloomington and my time as a fellow here at the Chamber, I've always felt that Bloomington has been very civic-minded and engaged. It would make sense for the city hosting our state's largest institution of higher education. Yet, maybe this is a sort of tunnel vision that comes from the bubble of a university campus and working in advocacy. Nonetheless, I was surprised to see that Monroe County's turnout of 63% in the 2020 election, was lower than the state average (65%). Only 16 other counties had turnout rates at the same or lower levels than Monroe County. While the turnout rates of those 17 counties offers some interesting correlations and points for discussion, I will leave that for another time. One our missions here at the Chamber is to foster civic engagement. As such, we want to make sure we do our part to increase our turnout. First and foremost, there is still time to register to vote. In fact, you have until Oct. 7 to do so. You can go to indianavoters.in.gov to check your voter registration status or to register to vote online. If you'd like to vote in person or have any questions, you can contact the Monroe County Election Central at 812-349-2690. Second, Monroe County Election Central has released its list of polling locations. Those can be viewed using this link. Additionally, we have set up an election page on our website to help provide information on candidates for Monroe County-specific races. Finally, we're hosting our Elect Connect event on October 9th at the John Waldron Arts Center from 3:00-4:30pm where we'll hear from candidates vying for the County Commissioner District 3 and State Representative District 62 seats. To register for this free community event, use this link. We look forward to seeing Monroe County's increased turnout in this election. |
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