No Wheel Tax in Wausau’s 2025 Budget, But it Could Come Back in the Future

Thursday, October 31st, 2024 -- 8:01 AM

(Mike Leischner, WSAU) Wausau Residents shouldn’t expect a wheel tax as part of the 2025 city budget, but don’t rule it out in future spending plans.

According to Mike Leischner with WSAU, the city’s finance committee discussed the proposed $25 per vehicle fee in Tuesday evening’s budget workshop.

While Mayor Doug Diny has made it clear that he will veto any budget that includes the fee, Public Works Director Eric Lindman says it’s still something the city should look into as diversified revenue.

“I know the wheel tax is not popular to even talk about, but when you look at bringing in $600,000 to spend on roads, we’re taking money off the levy to fund our operations. Whether it’s hot mix or crack sealing."

“[That money] can either be used to supplement any of those items, to reduce our borrowing, to reduce the amount that we pull off the levy, or it could be used to add to it."

"Those are decisions that the council would have.” Alders Vicki Tierney agreed, saying the item warrants further discussion. “I think that it is something we should consider looking at for future budgets.”

“I would tend to agree,” said Committee Chair Michael Martens. “I don’t think we are in a point right now where we can enact a wheel tax but I think this is going to come back for discussion at some point."

"Probably late winter/early spring we could have some educational sessions on pros and cons and cost benefits of something like this to the city.” Lindman and Finance Director MaryAnne Groat both noted Wausau residents do not directly benefit from Marathon County’s $25 wheel tax because that money is spent on roads in the rural portions of the county.

A total of 42 cities in Wisconsin charge wheel taxes to their residents. In some cities, that’s on top of a county-imposed wheel tax. meaning those residents pay extra registration fees to their county and city on top of the fees already imposed by the state.

In Eau Claire, residents pay a $24 wheel tax to the city and $30 to the county. Madison charges residents $40 for each vehicle registered within city limits. Dane County adds another $28.

Milwaukee residents pay an extra $60; with $30 going to the city and county. Tuesday’s session also saw the committee throw out proposed cuts to the parks department such as closing a swimming pool and cutting winter recreation at the Sylvan Hill tubing area.

Some on the committee noted that Sylvan Hill will break even in a typical winter, which didn’t happen last year due to less-than-typical conditions. A proposal to drop or scale back fall leaf collection was also called off, meaning residents should expect the usual two rounds of collection next fall.

The committee also decided against implementing an extra security fee for free events in the 400 Block such as Wausau Events’ Concerts on the Square but did propose adding a ticketed event charge for police services.

The committee has spent the last few weeks working to trim the budget to a 2.5% levy increase.

Feel free to contact us with questions and/or comments.