Village of Theresa Contemplates Wheel Tax

The Theresa Public Works Committee and village board weighed implementing a wheel tax during their meetings on Monday, October 20.

A wheel tax is an extra fee charged to village residents during vehicle registration. Per Department of Transportation (DOT) regulations, the funds accumulated from a wheel tax can only be used for road-related expenses, such as “maintenance, resurfacing and reconstruction; sidewalks, signage, and traffic control devices; multi-use paths and pedestrian safety improvements; and planning, engineering, and debt service related to such transportation projects.”

Vehicles exempt from wheel taxes include but are not limited to “vehicles registered at more than 8,000 pounds, dual purpose farm trucks, motor homes, buses, trailers, mopeds, motorcycles, and any other vehicle classes exempted by statute or administrative rule.”

Vehicle plate classes that are exempt include “Antique, Collector, Historic Military, Hobbyist, Medal of Honor, and any other plate class designated by state law or WisDOT.”

Discussion of a wheel tax began during the Public Works Committee meeting, which preceded the board meeting.

One resident commented, “If you’re charging us now for a wheel tax, what are you going to charge us for next? I mean, a hundred bucks here, a hundred bucks there on top of the water increase, which I get that you guys had to do . . . You guys are stretched a little thin. We’re all getting stretched a little thin. I see both sides of the fence here.”

Opposition to the wheel tax was also expressed during the full board meeting.

An email written by retired Trustee JR Koenigs was read by President Jody Steger during public comment.

“I would like to express my opposition to the board regarding this proposed wheel tax. This tax will, not might, harm fixed-income and low-income residents,” read a portion of the email. “A wheel tax, often a flat fee, is a regressive form of taxation. It takes a larger percentage of income from low-wage earners than it does from high earners. This can be especially burdensome for low-income residents who may depend on older, less valuable vehicles to get to work.”

While introducing the wheel tax discussion during the board meeting, Public Works Committee Chair Dave Brandenburg explained that President Steger asked that it be put on the agenda “as something to think about because we do have limited ability to raise our levy.”

After the introduction, President Steger elaborated on potential wheel tax earnings and the reasons to consider implementing one.

“According to the DOT, we would have about 1,458 vehicles in the village that would apply to this wheel tax. If we were to do a $30 wheel tax on each vehicle, it would generate $43,740, minus the administration fee that the Wisconsin DOT would take out, which is three cents per vehicle. The end balance would be $43,302.60 we would get a year, give or take,” stated President Steger. “The money we would get for that would be put into a segregated account . . . Every month, as people pay their registration fees for their vehicle, the DOT would send whatever that money is for the wheel tax right into that segregated account.”

Area villages with wheel taxes include Eden ($30), Hustisford ($35), Iron Ridge ($10), and Lomira ($30).

President Steger continued, “As you guys are all aware, and I’ve been getting a lot of complaints the last couple of years, our streets are getting in really rough shape. The cost of redoing these streets is going up dramatically. Our revenue coming in can’t match the cost of what these streets are to repair them.”

The village has and continues to apply for grants for road projects. Earlier in the board meeting, Village Grant Writer Tammy Hampton explained that most grants require match funds, meaning the village must pay for a fixed percentage of the total project costs.

“The only way we can get more money to do our roads is to borrow money,” said President Steger. “If we take a loan out, then we will be paying interest on that loan. Plus, your taxes are going to go up accordingly to cover the payment of that loan. I don’t have a really good answer as to which way we should go.”

“I don’t disagree with you, Trustee Haak,” answered Trustee Brandenburg. “I think we can wait and see how that new construction affects our budget.”

The board decided not to implement a wheel tax at this time, but implementation may be discussed in the future.

Board Matters:
• The board discussed approving the 2026 Joint Powers Agreement with Dodge County. The agreement allows response to 911 calls within the village. Trustee Haak made the motion to approve the agreement, which passed unanimously.
• The board also considered approving the KIN-X 2025-2026 Snow Season Agreement for snow removal services. The motion to approve the agreement was made by Trustee Robin Billings and passed unanimously.
• Additionally, the board considered contracting with the Dodge County Humane Society. The contract allows the village to send “up to [five] domestic stray animals” to the humane society for $1,800 instead of the police department boarding the animals. A motion to approve the contract was made by President Steger and passed unanimously.
• Entering into a three-year contract with Catalis for assessment services was also discussed by the board. The assessment services would cost the village $6,200 per year. Trustee Brandenburg made the motion to approve the three-year contract, which passed unanimously.
• The board considered passing Resolution 2025-03: Urban Forestry Grant. The resolution is required to receive the grant and states that the village intends to apply for the Urban Forestry Grant and “will comply with all local, state, and federal rules, regulations, and ordinances relating to this project and the cost-share agreement.” The motion to approve the resolution was made by Trustee Brandenburg and passed unanimously.
• The board then discussed approving a capital improvement plan (CIP). The 10-year plan outlines what projects the village hopes to complete each year and the estimated project costs. A motion to approve the CIP with the addition of a line item for a Well 1 building update was made by Trustee Billings and passed unanimously.
• The board considered approving the Library Fiscal Agent Agreement. Since the library’s opening, the Village and the Town of Theresa have both contributed 50% of the library budget funds. The board decided to retain that percentage for this year. The motion to approve the agreement was made by Trustee Brandenburg and passed unanimously.
• The board reviewed a petition for direct annexation of a portion of parcel 042-1217-1512-002 from the Town of Theresa. Sections of the parcel are located in both the town and the village. The parcel owner wishes to sell it, which is the reason for the requested annexation. Trustee Brandenburg made a motion to approve the annexation, contingent upon Department of Administration (DOA) approval and Town of Theresa detachment resolution. The motion passed unanimously. The Town of Theresa will meet about a possible detachment resolution at its next meeting on November 3.
• Police Chief Dan Markus informed the board that the police department building is in need of new doors. He also asked the board to consider installing cameras on the back of the building. A motion to allow Chief Markus to explore options for new doors and cameras was made by Trustee Brandenburg and passed unanimously.