New Bill Would Change How Municipalities Could Enact Wheel Taxes

Tuesday, November 4th, 2025 -- 8:00 AM

(Sarah Lehr, Wisconsin Public Radio) A Republican-backed bill seeks to change the process for adding wheel taxes in Wisconsin by requiring approval from local voters before those vehicle registration fees can be imposed.

According to Sarah Lehr with the Wisconsin Public Radio, fourteen Wisconsin counties and more than 50 municipalities have wheel taxes in place. Residents in those communities must pay that added fee each year when they register a car, truck or motorcycle.

In Wisconsin, those fees range from $10 to $40 a year in each jurisdiction. Drivers in some Wisconsin communities have to pay both a local and a county wheel tax.

A group of GOP lawmakers say the fees amount to taxation without direct representation, and they’re calling for a requirement that taxpayers approve wheel taxes through referendum before they can be imposed.

Meanwhile, local government leaders have raised alarms about the bill, saying it would make it harder for communities to fund road paving and other transportation projects.

Under the proposal, a new wheel tax could only be imposed if it’s approved by a majority of voters in a referendum. The bill also would affect the scores of communities that already have wheel taxes, by opening the door for those fees to be eliminated.

Under the proposal, an existing wheel tax would be repealed if local voters don’t agree to uphold the wheel tax during an election that happens within 18 months of the bill becoming law.

The Wisconsin Counties Association and the League of Wisconsin Municipalities both registered against the bill. State law limits the ability of local governments to raise property taxes without voter approval, and supporters of the wheel tax say the fee is one of few options that communities have to bring in money.

Evan Miller, a lobbyist with the league, said elected officials already take input from their constituents. He argued the bill would create an unnecessary barrier. He said local communities are already struggling to fund road repairs while faced with rising costs for equipment and labor.

For many communities, he said wheel taxes are a predictable source of revenue even as other funding sources, like money from the state and federal government, fluctuates year over year.

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