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Indianapolis, IN Business Licensing & Operations: Towing Companies (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Licensing body
Division of construction and business
Max tow fee
$150.00
Max storage fee
$30.00 per 24 hrs
Pass-through tows
Exempt from license

Summary

Tow companies performing non-consensual tows starting in the city must hold a license from the division of construction and business services.

It shall be unlawful for a tow business that performs non-consensual towing to perform a towing service originating within the city without first having been issued a license therefor by the division of construction and business. The requirement for this license is made without regard to whether or not the towing business is physically headquartered within the boundaries of the city.(b)Notwithstanding the provisions of subsection (a) of this section, a tow truck business that merely transports a vehicle through the city is exempt from this licensing requirement, provided that the tow does not originate within the city.(c)The fee for a tow business license shall be provided in section 131-501 of the Code. (G.O. 26, 2011, § 1; G.O. 41, 2016, § 2)

Source: Indianapolis BNS - Towing PermitsView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 47 Update 2).

Full Breakdown

Code Chapter 995 bars a tow business from performing a non-consensual tow originating in the city without a license from the division of construction and business, regardless of where the company is headquartered. A tow truck merely passing a vehicle through the city without an originating tow is exempt. Licensees must file insurance proof, a fee schedule, and driver information, and follow strict rules on authorization, signage, storage, and fee caps ($150 tow, $30/24-hr storage).

Violations & Fines

Towing without the required license, or violating chapter requirements, is enforced under Code Sec. 103-3 and Article IV of Chapter 801; unlawfully towed vehicles can have fees refunded to the owner.

Frequently Asked Questions

Does an out-of-city tow company need this license?
Yes, if the tow originates within the city, the license is required regardless of where the tow business is headquartered.
Is booting a vehicle allowed instead of towing?
No. Sec. 995-304(b) states the practice of booting a vehicle to hold it for towing is prohibited.

Sources & Official References

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All Indianapolis rules

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