Neenah's wheel tax would replace the TARF tax that they were threatened legal action for. PC: Fox 11 Online
NEENAH, WI (WTAQ-WLUK) — The city of Neenah’s Common Council approved an ordinance for a $30 wheel tax to help offset costs on road repairs.
City officials estimate the tax would generate $800,000 per year.
The wheel tax, officially an annual vehicle registration fee, charges residents of a certain municipality a fixed amount per year based on automobile ownership. In this case, a resident would pay $30 for each automobile owned.
Alderman Dan Steiner, who chairs the city’s finance committee, said the city was faced with three options: issue special assessments, create a debt levy or institute this wheel tax. Special assessments can be $3,000-4,000 for homeowners, per Steiner.
From 2019 to 2024, the city had an annual transportation assessment replacement fee, which taxed property owners. Homeowners paid $40 on average. The tax was removed due to a lawsuit alleging the tax was illegal, since Wisconsin did not specifically authorize the law.
“The TARF was the best option,” said Neenah Mayor Jane B. Lang. “They thought [it was] the most equitable option, but obviously identified as unlawful. I have been working with our State Representative [Dean] Kaufert to try to have that changed, but that could take a very long time, and we needed to have a solution.”
Built into Neenah’s foundation is a thriving manufacturing sector — as of 2020, 23% of the city’s employment worked in the manufacturing sector, according to the city.
“We have a vibrant industry in this area,” said Cameron Clark, a Neenah resident and critic of the wheel tax. “But I also know that that vibrant industry comes very heavy trucks with significant traffic and wear and tear on roads.”
Lang said taxing businesses isn’t so simple.
“Businesses aren’t taxed in the same way as residents,” said Lang. “So that’s not a fair comparison.”
The tax applies to all vehicles under 8,000 lbs. For context, a Ford F-150 weighs about 5,000 lbs.
Some notable Northeast Wisconsin cities that collect a wheel tax include Green Bay, Appleton, Oshkosh, Kaukauna, Manitowoc, Sheboygan, New London and Chilton.
See which cities and counties collect wheel taxes in Wisconsin
The ordinance to create the tax, which faced criticism from residents, passed eight to one. Once the ordinance is written, the city council will reconvene to officially vote on the tax. If officially passed, the tax will go into effect in 2026.
Comments