The Allen County Council is considering a plan from the county commissioners to raise the local wheel tax collected from motorists when they buy or renew license plates. But details emerged last week that would change the proposed tax rates and raise new questions about the fairness of the plan.

Under the latest proposal, those with the most expensive, newest luxury cars would see their taxes go down. Those with the oldest, least expensive cars would see their rates rise.

Here’s a look at the wheel tax and the proposed increase:

What is the wheel tax, and do I pay a surtax, too?

The wheel tax applies only to trucks and tractors weighing more than 11,000 pounds. Owners of most cars pay what is officially known as a surtax, but motorists generally also call it the wheel tax. Each vehicle is assessed only one of the taxes.

Combined, the taxes bring in about $3.4 million a year in Allen County. The vast majority comes from the surtax on cars; only about $375,000 comes from the wheel tax on trucks, largely because commercial trucks are exempt.

How much do I pay now?

Current county law theoretically requires car owners to pay a wheel surtax of 5 percent of the amount on the state excise tax schedule. But state law requires a minimum surtax of $7.50 on each car, notes Tera Klutz, the deputy auditor of Allen County whose understanding of local tax issues surpasses that of most county officials. Many motorists pay the $7.50 minimum, but owners of more expensive models pay more. The highest amount, Klutz said, is $53 – for a car valued at more than $42,500 and a year or less old.

The surtax on a 5-year-old car purchased for $20,000 is $13.

The wheel tax for heavier trucks varies widely, from $7.50 for buses to $15 for RVs to $30 for the heaviest trucks and tractors.

How much would I pay if the tax were raised?

County and city officials want to raise twice the current amount of $3.4 million and apparently thought they could accomplish that by doubling the taxes. But as Klutz and others dug into the proposal, they realized that wouldn’t work.

The maximum rate for the wheel tax on trucks, for example, is $40, so the $30 rate could not be doubled.

More importantly, if the county doubled the surtax on cars to 10 percent, many would still continue to pay the $7.50 minimum.

So, because officials must choose between a percentage rate or a flat tax amount, the county is looking now at a flat surtax of $20 on each vehicle less than 11,000 pounds, regardless of its value and age. That amount is two and two-thirds times higher than the current minimum flat tax. Those now paying more than $20 – those with the most expensive cars – would see their tax cut.

State law permits a maximum flat tax of $25 or 10 percent of the amount on the excise tax schedules.

Why do officials want an additional $3.4 million?

About $2.2 million would go to maintenance and repair of bridges – a contentious issue between city and county officials. The remainder, about $1.2 million, would go to cities and towns for roads and streets. City officials insist on keeping a piece of the revenues.

What happens next?

County Council members meet today and may discuss the proposed new rate as well as some wording changes the Fort Wayne City Council is seeking.

Some County Council members may be hesitant to adopt the tax, especially since one-third of it would not go to county government.

In addition, with a special session of the General Assembly on the horizon, the council may well decide to wait to see whether legislators revive a proposed bill that would have allowed the county to use a separate property-tax-financed fund to pay for all bridge repair.

The council has to adopt any changes by June 30 to take effect in 2010, and the bridge needs cannot go unmet indefinitely.

Higher local taxes on vehicles may well be the best of the bad alternatives.