Neenah Imposes $30 Wheel Tax: A Lesser Evil for Street Upgrades

Deeming it the least undesirable option among three choices, the Neenah Common Council approved with an 8-to-1 vote on Wednesday to implement a $30 measure. annual wheel tax starting in 2026.

The revenue from the wheel tax, estimated at $812,250, will help pay for street improvements and sidewalk infill projects.

Neenah will be added to an increasing number of cities implementing wheel taxes, which include Appleton, Chilton, Green Bay, Kaukauna, Manitowoc, New London, Oshkosh, and Sheboygan.

In addition to a wheel tax, two more methods for generating income were explored. One involved levying special assessments on neighboring properties, potentially resulting in bills ranging from $8,000 to $9,000 for a usual Neenah homeowner. Critics of these special assessments contended that benefits extend beyond merely those homes directly adjacent to the construction site.

An alternative approach preferred by Council Member William Pollnow Jr. involved taking out loans that would eventually be reimbursed via property taxes. However, this method might leave tax-exempt entities like churches and schools without a contribution obligation, potentially constraining the city’s ability to finance additional infrastructure initiatives.

There are several downsides to implementing a wheel tax. Primarily, it shifts the financial responsibility for maintaining roads onto local residents while exempting commercial and industrial entities. This exemption includes vehicles weighing over 8,000 pounds like semi-trucks and those not registered within the city limits. In reality, heavy-duty trucks likely contribute far more wear and tear to roadways compared to regular cars and trucks.

The council members weren't fond of any of the alternatives.

“I realize there’s some frustration,” Dan Steiner stated, “however, regrettably, there isn’t really a magical pot of money we can tap into to cover this cost. As such, we needed to choose the most viable alternative.”

From 2019 to 2024, Neenah implemented an annual Transportation Assessment Replacement Fee, known as TARF, aimed at financing road and walkway improvements. This measure was introduced to replace the previously disliked and cumbersome special assessments.

The TARF relied on the extent of impermeable surfaces within a property. This method was preferred due to its fairness and equity, ensuring that every property owner—including those exempt from taxes—contributed proportionally towards expenses. A standard homeowner would pay around $40 per unit fee. For larger enterprises, the cost might comprise several such units but had an upper limit set at $3,600.

The council discarded the TARF in November. following the filing of a claim by Wisconsin Manufacturers & Commerce against Neenah, asserting The TARF was an unlawful tax as it lacked specific authorization under state legislation.

Neenah decided against challenging the claim, given previous rulings established for transport utilities within the municipality of Buchanan and the village of Pewaukee.

In 2025, Neenah raised its debt service tax levy by $825,000—a sum equivalent to what the TARF would have produced—as a temporary measure while exploring different options.

A wheel tax represents an annual vehicle registration charge. In Wisconsin, the Department of Transportation gathers this tax on behalf of the local government, keeps an administrative fee, and forwards the remainder to the respective municipality.

In Neenah, for a standard single-family home owning two cars, the yearly fee would amount to $60, as opposed to $40 under the TARF.

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

The article initially appeared in the Appleton Post-Crescent. To address the funding needed for street enhancements, Neenah implements a $30 wheel tax, positioning it as the least undesirable option among three choices.