(INDIANAPOLIS) - State lawmakers are struggling with a fundamental question: is it, or is it not, a tax increase? In the case of BMV Correctional Bill, it's not black and white.
Most agree the bill would help the BMV make up the refunds it was forced to pay for fee overpayments, but is a fee increase a tax increase? Lawmakers took to the House floor Wednesday to weigh in.
"We are not charging more than the statutes your predecessors passed," said Rep. Ed Soliday (R-Valparaiso). "We are charging more in some cases and less in many cases than the BMV was charging erroneously."
According to Rep. Dan Forestral (D-Indianapolis), "It is an increase to help make up what was lost in the lawsuit. I just don't agree with it and I don't think your constituents would want a fee increase at the BMV either."
The devil is in the details in this one. It passed out of both the House and the Senate and is how headed to the governor for his signature.
If you pay back overpayments and then raise fees for the very people who overpaid in the first place, seems like it would defeat the purpose of the refund. We will have to wait and see what the governor decides.
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