Appleton raises its wheel tax to $30 to help pay for street reconstruction projects

APPLETON — Car ownership in Appleton will cost a bit more starting next year.

The Common Council voted 8-7 Wednesday to increase the city's wheel tax from $20 to $30 to help pay for the rising costs of street reconstruction projects. The new rate will take effect Jan. 1, about two months later than initially was proposed by council member Nate Wolff.

The $20 wheel tax has been in effect since 2015. It replaced street reconstruction assessments that often left abutting property owners with bills totaling thousands of dollars.

"It should have been raised incrementally a little bit over time," council member Alex Schultz said, "so here we are. We're asking for a 50% increase, which to me is not terrible."

Last month the city's Finance Committee voted 3-2 against the increase. However, six of the nine council members who spoke on the matter at the time expressed an interest, if not outright support, for a higher wheel tax.

The council was scheduled to vote on the increase June 5 but delayed action for two weeks because council member and resolution co-signer Brad Firkus was absent.

The $10 increase won't fully cover Appleton's street reconstruction costs, but supporters see it as a step toward a more comprehensive solution of how to pay for street reconstruction projects, which have become more expensive due to inflationary pressures.

What did opponents of the increase say?

Council members Kristin Alfheim, Chris Croatt, Chad Doran, Sheri Hartzheim, Patrick Hayden, Vaya Jones and Katie Van Zeeland voted against the increase.

"We can't keep asking our constituents for more money to pay for these things when we're not willing to do the hard work that we've been elected to do, which is to budget responsibility," Doran said.

Hartzheim said Appleton needs to explore other ways to pay for street reconstruction.

"We don't go to our boss and ask for a raise when our money is short," Hartzheim said. "We go to our budget and figure out where we can get that extra money."

During the council's public forum, Appleton residents Deb and Walter Blank said the wheel tax was a regressive and unfair tax because it is applied uniformly regardless of income and excludes certain groups.

"Taxes like this are not good for Appleton," Walter Blank said. "They give us a poor reputation, contributing to reasons to avoid choosing to live in the city."

What, exactly, is a wheel tax?

A wheel tax is an annual vehicle registration fee enacted by a municipality or county to raise money to help pay for street improvements. The revenue can be used to offset property taxes or street assessments or a combination of the two.

Appleton, Chilton, Green Bay, Kaukauna, Manitowoc, New London, Oshkosh and Sheboygan all have wheel taxes. They range from $10 to $35.

The Wisconsin Department of Transportation collects the wheel taxes for the municipality or county, retains an administrative fee and sends the rest to the municipality or county.

How much money does Appleton's wheel tax generate?

The current $20 wheel tax generates nearly $1.3 million annually. The $10 increase will yield an additional $650,000, bringing the total to $1.95 million.

The amount doesn't fully cover what Appleton spends on street reconstruction projects. The balance is covered by property taxes, transportation aids and federal and state grants.

Appleton considered enacting a transportation utility fee to replace the city's wheel tax, but the legality of such a fee hasn't held up in court.

Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on Twitter at @DukeBehnke.

This article originally appeared on Appleton Post-Crescent: Appleton raises its wheel tax to $30 to help pay for street projects