(The Center Square) – Eau Claire’s City Council approved an increase in its wheel tax from $24 to $50 at a Tuesday night meeting, making it the largest wheel tax in the state.
A wheel tax is a local fee added to vehicle registration costs in the state, with nearly half of the state’s municipalities now having wheel taxes after just four had them in 2010.
Overall, wheel taxes will cost taxpayers $70 million in 2025, according to a new report from Wisconsin Policy Forum.
Along with Eau Claire, new wheel taxes were recently approved in Fitchburg, Oshkosh, Sun Prairie and Wauwatosa. The taxes are in addition to Wisconsin’s $85 registration fee.
In 2015, wheel taxes raised $10 million. The taxes then grew rapidly through 2021, then the growth slowed until 2025, when wheel taxes went up 12% statewide, according to the report.
“In many communities, leaders of local governments such as the city of Milwaukee and Milwaukee County will have to make difficult decisions about whether to make the kinds of investments needed to repair aging streets and maintain transit services despite rising costs,” the report said. “Local wheel taxes could help meet these needs, but policymakers and voters will have to weigh the benefits against the costs.”
Sen. Rob Hutton, R-Brookfield, recently introduced legislation that would require local officials to ask voters to approve a wheel tax.
“This 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.
