NEW BERLIN — Drivers in New Berlin could soon pay up to $40 more per year to register their vehicles under a proposal being considered by the Common Council.
The city is weighing whether to implement a municipal wheel tax — an annual fee added to state vehicle registration costs — that would apply to roughly 34,000 cars, light trucks, and autocycles registered in New Berlin, according to a July 22 memo from Finance Director Ralph Chipman.
The revenue would help close a projected $3.7 million budget shortfall in 2025.
Chipman’s memo outlines four potential rate options:
- $10 per vehicle, generating approximately $340,695
- $20 per vehicle, generating approximately $682,415
- $30 per vehicle, generating approximately $1,024,135
- $40 per vehicle, generating approximately $1,365,855
According to state law, the city must use wheel tax funds for transportation-related purposes such as roads, bridges, sidewalks, and snow and ice removal.
“The increase is far below inflation,” Chipman said in an email. “Without another revenue source, the city will be unable to maintain its current service level.”
New Berlin’s ability to raise property taxes next year is capped at just $31,650, due to state-imposed levy limits, leaving city leaders with limited options to fund transportation services like road repairs and snow plowing.
Watch: New Berlin weighs wheel tax; Locals say the budget’s already tight
Tommy Colburn, a New Berlin resident and race-car driver, said he already feels the financial pressure when renewing his registration.
“You race one to three times a weekend, and you’re doing 20 to 30 hours of maintenance throughout the week,” Colburn said. “Groceries, the car insurance, car payments — I definitely do feel it at the DMV. It kind of feels unnecessary.”
He said that while he’s noticed construction around the city, the added cost still feels like a burden.
“New Berlin is the escape from the city, so I can see why people here would have trouble making ends meet with added cost,” Colburn said.
Another resident, Zach Krocka, said every added fee makes a difference.
“It’s not cheap,” Krocka said. “It really depends on what kind of car you have… but these days, every little bit helps.”
If approved, New Berlin would become the first community in Waukesha County to implement a municipal wheel tax.
Neighboring communities, however, are also exploring similar solutions.
“The City of Brookfield, a border community of ours, is also looking at wheel taxes, among other things, to balance their budget after their failed referendum,” Chipman said in an email.
Elm Grove’s Village Manager also expects the wheel tax to come up in August at one of their committee meetings.
The Wisconsin Department of Transportation reports more than 40 other municipalities currently collect one, including Milwaukee ($30) and Madison ($40).
The Common Council will discuss and make a possible decision on Tuesday night regarding whether to authorize staff to work with the state to initiate the implementation process.
If approved, drivers would start paying the fee on January 1, 2026. A final ordinance with the chosen fee amount would be introduced later this year.
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