Politics

Indianapolis Sales Tax Referendum Would Fund Infrastructure Repairs and Workforce Centers

The November ballot measure would raise the local sales tax rate by 0.5 percent to support road maintenance contracts and job training sites in Marion County.

By Indianapolis Policy Desk · Published July 8, 2026

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Indianapolis Sales Tax Referendum Would Fund Infrastructure Repairs and Workforce Centers — Photo by aljuarez / flickr (cc0)

Indianapolis residents will vote November 3 on a local referendum that proposes raising the Marion County sales tax by half a percentage point to pay for road repairs, public transit upgrades and new workforce training facilities.

The measure appears on the ballot after the City-County Council approved placing it before voters in May, citing a 2025 capital needs assessment that listed $312 million in deferred maintenance on streets and bridges inside the county limits.

Workforce and Service Impacts

Revenue from the tax would support three workforce development centers operated by the Indy Chamber and the Indianapolis Private Industry Council, with sites planned for the Near Eastside, Westside and Lawrence Township. Each center would offer certification programs in construction trades, logistics and advanced manufacturing, fields that employed 48,000 Marion County residents in 2025 according to Indiana Department of Workforce Development data.

Transit allocations would expand IndyGo bus routes serving industrial corridors along Interstate 70 and the Keystone Avenue corridor, reducing average commute times for shift workers at distribution centers near the airport by an estimated 12 minutes per trip.

Budget Figures and Next Steps

City budget documents project the half-cent increase would generate $118 million over five years, with 45 percent directed to capital road projects, 30 percent to workforce programs and 25 percent to transit capital purchases. If approved, the tax would take effect July 1 2027 and require annual public reports from the Department of Public Works and the Metropolitan Planning Organization.

Voters can review the full text of the referendum language and the projected spending plan on the Marion County Election Board website beginning August 1. Absentee and early voting periods open October 6.

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