Marion County Voters Decide on Transit Tax Increase for Bus Expansion

The proposed Marion County transit levy referendum would authorize an additional 12 cents per $100 of assessed property value to support operations and capital projects at the Indianapolis Public Transportation Corporation. Passage would direct an estimated $28 million annually toward route expansions on the east and west sides of the city plus two new bus rapid transit lines. Residents without cars who rely on existing IndyGo routes stand to gain more frequent service and extended hours while homeowners across all Marion County townships would see higher annual tax bills.

Why the measure reaches voters this fall

IndyGo faces a projected operating gap after federal pandemic relief funds end in September 2026. Local advocates note that ridership recovered to 92 percent of 2019 levels by March 2026 yet fares cover only 18 percent of costs. The referendum language states that revenue would first maintain current headways on 12 core routes before adding weekend service on four suburban connectors. Without new local revenue the agency has indicated it would cut 22 weekday trips starting in January 2027.

Daily commuters on the Red Line rapid transit corridor would receive two additional vehicles per hour during peak periods if the measure passes. Households in Center Township that currently pay $1,840 in annual property taxes on a median-value home would pay roughly $210 more each year. Renters in multifamily buildings could face pass-through increases through lease adjustments beginning in 2028.

Budget figures and distribution details

City budget documents show IndyGo received $41 million in local property tax revenue in fiscal year 2025. The new levy would raise that total by 68 percent while capping administrative overhead at 9 percent of collections. Policy analysts say the funds would also cover 140 new full-time operator positions and maintenance for 45 additional buses ordered under an existing federal grant. Areas outside the current service boundary such as parts of Decatur and Franklin townships would remain ineligible for new routes under the measure's geographic restrictions.

If approved the levy takes effect with the 2027 tax year and requires renewal by voters after eight years. The Marion County Election Board has scheduled the question for the November 3 2026 general ballot alongside municipal races. County officials project that collection would begin with the spring 2027 property tax statements mailed to approximately 340,000 parcels.