MADISON, WI — Senator Rob Hutton (R-Brookfield) on Wednesday testified before the Assembly Committee on Local Government in support of Assembly Bill 483, legislation he co-authored with Rep. Dave Maxey (R-New Berlin) that gives Wisconsin voters a direct say on whether to approve a local vehicle registration fee, commonly known as a wheel tax.
The proposal requires any wheel tax to be directly approved by local voters in a referendum held during a regularly scheduled election. The bill also applies retroactively, giving existing wheel taxes 18 months to earn voter approval or be repealed.
According to the Wisconsin Department of Transportation, 53 municipalities and 14 counties currently impose a wheel tax. The number has grown rapidly. In 2011, only four Wisconsin communities imposed a wheel tax, but since 2020, at least 24 additional local governments have adopted one. In some areas, residents pay the tax twice—once to their municipality and again to their county.
Locally, Elm Grove and New Berlin have discussed imposing a wheel tax and Milwaukee Mayor Cavalier Johnson has proposed increasing their existing tax from $10 to $40.
Wheel taxes typically range from $10 to $40 per vehicle, adding up to $66.7 million in costs for Wisconsin residents in 2024. “Some may argue that these 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.
Currently, local governments can impose or increase a wheel tax by a simple vote of the local governing board without direct voter approval. This stands in contrast to another locally imposed tax increase, property tax increases beyond levy limits, which must be approved by a direct vote of taxpayers through a referendum.
“This bill 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.
“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 said.
