#6 Introduce and schedule a public hearing to establish a $10.00 motor vehicle registration fee (wheel tax) (File Ord. #2011-503)
ADMINISTRATIVE SERVICES MEMORANDUM
November 21, 2011
TO: City Council
FROM: Jacob J. Winzenz, Dir. of Admin. Services/Assistant City Manager
SUBJECT: First Reading and Schedule a Public Hearing on a Proposed
Ordinance Establishing a Vehicle Registration Fee (Wheel Tax) in
the Amount of $10.00 per Vehicle (File Ordinance 2011-503)
Summary
Included in the 2012 budget is $550,000 from the establishment of a vehicle
registration fee (Wheel Tax) of $10.00 per vehicle. In order to enact such a fee
the City Council must first adopt an ordinance. File Ordinance 2011-503 has
been prepared for consideration by the City Council with an effective date of
January 1, 2012.
Recommendation
The Administrative Services Department recommends that, following the first
reading, the City Council schedule a public hearing regarding File Ordinance
2011-503 for December 12, 2011.
City Manager’s Recommendation
The City Manager recommends approval.
Background
One of the major challenges in preparing the 2012 budget was the loss of
revenue from the State of Wisconsin. Payments from the State for shared
revenues (including transportation aids) declined by over $860,000 from 2011. In
order to partially offset this loss of revenue the City Manager proposed a Vehicle
Registration Fee, or Wheel tax, in the amount of $10.00 per vehicle. Such a
Wheel tax is estimated to generate $550,000 in revenue on an annual basis.
File Ordinance 2011-503 establishes the Wheel Tax and parallels the enabling
statutory language. The Wheel Tax is collected by the State of Wisconsin,
Department of Transportation (WisDOT), along with other vehicle registration
fees. WisDOT charges and administrative fee of $.10 per vehicle and remits the
balance to the City. Revenue generated from the wheel tax must be used for
transportation-related purposes as required by Statute.
Analysis
As previously stated, a Wheel Tax of $10.00 per vehicle is estimated to generate
$550,000 in new revenue. This additional revenue will help fill the hole created
by the decline in State aids. In addition, the proposed Wheel tax will help
diversify the revenue base of the City. At the present time property taxes and
State Aids comprise 62% and 19% respectively of General Fund revenue. The
addition of the Wheel tax will add an additional source of revenue that is less
dependent on economic fluctuations.
Four (4) jurisdictions in the State currently charge a Wheel Tax. These include:
Beloit $10.00
Milwaukee $20.00
Mayville $10.00
St. Croix County $10.00
2
ORDINANCE NO. 2011 - 503
An ordinance establishing a motor vehicle registration fee.
THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS:
SECTION I.
Chapter 3.22 of the Code of General Ordinances of the City of Janesville is
hereby adopted to read as follows:
“Chapter 3.22
MOTOR VEHICLE REGISTRATION FEE
(Wheel Tax)
Sections:
3.22.010 Authority
3.22.020 Purpose
3.22.030 Definitions
3.22.040 Imposition of Motor Vehicle Registration Fee
3.22.050 Administrative costs
3.22.060 Exemptions
3.22.070 Replacements
3.22.080 Deposit of fee revenues--administration
3.22.010 Authority. This chapter is adopted pursuant to the authority granted by Wisconsin
Statute § 341.35, as from time to time amended or renumbered.
3.22.020 Purpose. The purpose of this ordinance is to provide the City of Janesville a source
of revenue in addition to other revenue sources currently being utilized to maintain public streets,
highways, and for all other transportation-related purposes.
3.22.030 Definitions. In this chapter, a "motor vehicle" means an automobile or motor truck
registered under s. 341.25 (1) (c) at a gross weight of not more than 8,000 pounds.
3.22.040 Imposition of Motor Vehicle Registration Fee. (A) Pursuant to Section 341.35, Wis.
Stats., an annual flat City registration fee as set forth herein in the amount of Ten Dollars ($10.00) is
hereby imposed upon all motor vehicles registered in the state of Wisconsin that are customarily kept
in the City.
(B) This fee shall be paid by the registration applicant at the time that a motor vehicle is first
registered and at each time of registration renewal.
(C) The City registration fee shall be paid as provided in Wisconsin Statute § 341.35(5).
(D) The City registration fee shall be in addition to state registration fees.
3.22.050 Administrative costs. WisDOT shall retain a portion of the moneys collected
equal to the actual administrative costs related to the collection of these fees (currently
$0.10 per motor vehicle). The method for computing the administrative costs will be
reviewed annually by WisDOT, as provided in Wisconsin Statutes § 341.35.
3.22.060 Exemptions. The following motor vehicles are exempt from the annual Janesville
vehicle registration fee:
(A) All vehicles exempted by Wisconsin Statutes Chapter 341 from payment of a
state vehicle registration fee.
(B) All vehicles registered by the state under Wisconsin Statutes § 341.26 for a fee
of $5.
3.22.070 Replacements. No City vehicle registration fee may be imposed on a motor
vehicle which is a replacement for a motor vehicle for which a current City vehicle
registration fee has been paid.
3.22.080 Deposit of fee revenues-administration. (A) All moneys under the applicable statute
and this chapter remitted to the City by the Wisconsin Department of Transportation or other
applicable agency shall be deposited into the City’s general fund.
(B) The City Clerk-Treasurer shall be responsible for the administration of this chapter and funds.”
SECTION II.
This ordinance and its fees shall take effect at 12:01 o’clock a.m. on January 1,
2012, the public interest, welfare, benefit, and good so requiring, and the Common Council so finding.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Liebert
Eric J. Levitt, City Manager
McDonald
Rashkin
ATTEST:
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: City Administration
Prepared by: City Attorney