(The Center Square) – Local governments across Wisconsin could soon lose their ability to raise a tax without asking voters first.
Sen. Rob Hutton, R-Brookfield, this week introduced legislation to give voters a say on wheel taxes.
“This doesn’t take away options from local governments, but it does require local officials to make their case directly to the people and ensures taxpayers have the final say at the ballot box,” Hutton said.
Wheel taxes are the name for fees that many cities and counties in Wisconsin charge as part of vehicle registrations in the state. Usually those charges cost anywhere between $10 and $40 per year, and are in addition to Wisconsin’s $85 registration fee.
Many communities already have local wheel taxes and have had them for years. But Hutton said more communities are looking to add wheel taxes as a way to pay for road projects, or simply to bring-in more revenue.
Both Elm Grove and New Berlin, which are both part of Hutton’ s district, have both said they are considering a new wheel tax. Milwaukee Mayor Cavalier Johnson’s new city budget includes a $30 increase in Milwaukee’s wheel tax. Johnson said he hopes to raise $2.7 million a year from the increase.
“[Wheel taxes] are not make-or-break amounts, but every cost adds up, especially when you’re a family who lives paycheck-to-paycheck and struggles to afford groceries or a senior citizen who has to get by on a fixed income,” Hutton said.
In all, wheel taxes are worth nearly $67 million to local governments.
Local governments in the state can create a wheel tax with a simple majority vote. Hutton said that’s different from other local taxes, including over-the-levy property tax increases, which require approval from the voters.
“By placing these decisions directly in the hands of voters, our bill strengthens accountability and transparency in local tax decisions, which is particularly important for those least able to absorb new costs like these wheel taxes,” Hutton added.