Lawmaker wants Wisconsin voters to have say on local wheel taxes
Senator Rob Hutton of Wisconsin has introduced legislation that would require local governments to get voter approval before imposing or increasing wheel taxes, which are fees charged as part of vehicle registrations. Currently, local authorities can enact these taxes with just a majority vote, but Hutton’s bill aims to give taxpayers the final say through ballot measures.Wheel taxes, typically ranging from $10 to $40 annually along with the state’s $85 registration fee, generate nearly $67 million for local governments and are often used to fund road projects or increase revenue. Some communities in Hutton’s district, such as Elm Grove and New Berlin, are considering new wheel taxes, and Milwaukee plans to raise its wheel tax by $30 to collect an additional $2.7 million yearly. Hutton emphasizes that while the amounts may seem modest, they can add financial strain for families living paycheck-to-paycheck and seniors on fixed incomes. The proposed legislation aims to increase accountability and transparency in taxing decisions by involving voters directly.
Lawmaker wants Wisconsin voters to have say on local wheel taxes
(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.
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