Shawano, Sun Prairie join growing list of municipalities with wheel tax

(The Center Square) – Two more Wisconsin municipalities voted to add a wheel tax this week, with Sun Prairie adding a $30 tax and Shawano adding a $40 fee.

The taxes are added on to the $85 state vehicle registration fee for both cities and counties to spend on roads and road infrastructure.

Only four communities in the state collected wheel taxes as recently as 2011 despite the taxes being allowed since 1967, but since then the number has grown to 27 in 2017 and now includes at least 13 counties and 43 municipalities, according to the Wisconsin Policy Forum.

Wheel tax revenue jumped from $7.1 million to $20.7 million annually in the state from 2011 to 2017.

Shawano City Administrator Eddie Sheppard told New Media Inc. that the cost of materials for repairs have jumped and state levy limits have created an issue for local governments. The Shawano tax begins on Jan. 1 and is expected to collect $315,000 next year.

Sun Prairie has more than 130 miles of road, eight employees dedicated to maintaining the roads and supplies have increased in cost by 5% to 10%, according to a city memo.

Sun Prairie is expected to bring in $955,000 each year from the tax on an estimated 32,000 vehicles registered from the municipality.

“The City has previously utilized traffic impact fees, including the Westside Traffic Impact Fee, to reduce the cost borne by taxpayers from new development,” according to the memo. “Traffic impact fees can only be used for new construction, expansion, or improvement of facilities, and cannot be used for ongoing maintenance and repair.”

Evansville, Janesville, Madison and Oregon collect $40 wheel taxes while Hustisford, Oshkosh and Port Edwards collect $35 annually.

Eden, Lomira, Milwaukee and Eau, Milwaukee and Portage counties collect $30 each year. Dane County collects $28.

Adams, Redgranite and both Marathon and Vernon counties collect $25 while Eau Claire collects $24.

Appleton, Arena, Ashland, Baraboo, Beloit, Bellevue, Chilton, Doylestown, Fort Atkinson, Gillett, Green Bay, Lodi, Manitowoc, Montello, New London, Platteville, Portage, Rice Lake, Sauk, Sheboygan and all of Crawford, Dunn, Green, Iowa, Richland and St. Croix counties collect $20 each year.

Waterloo and Langlade County each collect $15.

Boscobel, Iron Ridge, Kaukauna, River Falls and Tigerton collect $10.