GOP bill would require referendum to approve local wheel taxes, even ones already in place

MILWAUKEE (CBS 58) -- A Republican bill would require local governments to get voters' approval in order to charge their own vehicle registration fees, even if those communities are already charging one.

Such registration fees, commonly known as wheel taxes, have become progressively more prevalent in Wisconsin. According to the Wisconsin Department of Transportation (WisDOT), 54 municipalities and 14 counties currently have an annual vehicle registration fee.

State Rep. Dave Maxey (R-New Berlin) said he was inspired to pursue the bill when his home community considered implementing a wheel tax earlier this year. Those plans were eventually scrapped, but Maxey moved forward with the legislation.

"I am on the city council here in New Berlin, and I do feel those [revenue] restraints," Maxey said. "But if you want to use a wheel tax, go to the voters and ask."

At Milwaukee City Hall, raising the city's $30 wheel tax has been a contentious topic as the Common Council considers amendments to Mayor Cavalier Johnson's proposed budget.

Johnson's budget would raise Milwaukee's wheel tax to $40. If the council were to approve that increase, Milwaukee would match Madison, Janesville, Fitchburg, Oregon, Shawano and Evansville in having the state's steepest vehicle registration fees.

In Milwaukee, car owners would have to pay $155 in yearly wheel taxes when factoring in the $85 state fee and a $30 wheel tax from Milwaukee County. That would give Milwaukee the highest total wheel tax in Wisconsin, surpassing Madison's $153 overall cost.

On the ground floor of City Hall, Laura's Gourmet Popcorn set up shop. Movement is essential to their business model; the shop pops up at the state fair and has also been a staple for 20 years at Jazz in the Park and in the US Bank building. 

Carro Zolecki helps manage the popcorn business, which is owned by her husband and his mother, Laura. Zolecki said she was on board with requiring voters' approval for local governments to keep charging a wheel tax.

"I mean, I understand everybody wants to get paid and make money," Zolecki said. "But I do think that the people should be able to vote on that."

If voters had to approve wheel taxes, Jason Stein from the nonpartisan Wisconsin Policy Forum said local governments would face an uphill climb in getting those referendums to pass.

Stein said counties and municipalities were turning to wheel taxes more frequently as they feel a pinch from COVID-19 federal aid expiring and longstanding state-imposed restrictions on property taxes.

While the state revamped its shared revenue system in 2024 to tie its local government sharing to sales tax revenue, Stein said years of payouts from Madison lagging inflation took its toll on city and county budgets.

Stein said past referendum results around the state demonstrate voters are more likely to grant a school district's request to raise property taxes than they are when a local government unit seeks more revenue.

"It's definitely harder for a city or county to get a referendum passed than it is a school district in the state, just on average," Stein said.

Maxey said he supported the idea of more direct democracy, but only to an extent.

While the New Berlin Republican said he would be on board with municipalities being able to enact a local sales tax through referendum, he stopped short of supporting a binding referendum on legalizing marijuana statewide.

"You know, that's a really good question," Maxey said when asked why marijuana laws shouldn't be left to voters. "I think there's a lot of things that have to happen before we ever get to the point of legalized marijuana."

The wheel tax bill had a hearing in the Assembly's local government committee on Wednesday. It will need to be passed by a legislative committee before being approved by both the Assembly and Senate.

Even then, Maxey acknowledged Democratic Gov. Tony Evers would almost certainly veto the bill, should it reach his desk. Maxey added he hadn't discussed the idea with the governor's office.

"Sometimes, things just need to be a message," Maxey said. "And I'm not only trying to send a message to the [League of Wisconsin Municipalities] and these others, but if you want to do something like this, you should be talking to the voters."

One message that's abundantly clear is people will never argue with having more direct control of their government.

"I do think that people should have more of a say so in things," Zolecki said. "Absolutely."