Gillett residents this year will pay $20 per vehicle to raise revenue for street upkeep.
With a unanimous vote, the Gillett City Council on Thursday adopted a wheel tax, as recommended by the Finance and Personnel Committee.
According to Mayor Irene Drake, the tax is scheduled to go into effect in about 90 days, once the Gillett clerk/treasurer returns from maternity leave and files the necessary paperwork.
The wheel tax will be charged to owners of vehicles registered in the city, including cars, vans, SUVs and trucks up to 8,000 pounds gross weight. Motorcycles are exempt.
The tax is projected to raise about $38,000 annually, based on the estimate of 1,900 registered vehicles in the city.
The wheel tax was enacted as a method to generate funds for a list of costly street updates.
According to information presented at a public meeting in December, a total redo of First Street would cost an estimated $1 million. Work on East Main Street is also estimated to cost $1 million, although the county would share the expense.
The state Department of Transportation proposal to update state Highway 22 in 2023 would require the city to replace the infrastructure under the highway and cover the expenses associated with parking lanes. In today’s dollars, that would cost the city $150,000 to $200,000, according to the city’s projections, but the cost will likely increase over the next eight years.
In addition, replacement of an aging box culvert on Washington Street is estimated to cost $500,000.
Debbie Erickson, Finance and Personnel Committee chairwoman, said her committee evaluated several revenue-generating suggestions provided by residents at the public meeting in December. These included collecting a “ton tax” from truckers or a sales tax, but the committee determined neither can be imposed by a municipality.
Residents also recommended the city charge ATV users and snowmobilers a parking fee at Zippel Park where they park their trailers; city officials said the proposal is under review. The proceeds would likely be earmarked for park and trails enhancement.
The city also will also install a donation box at Zippel Park this spring to collect contributions for use of its RV dump station.
Drake said an advantage of the wheel tax is that renters will contribute, not solely the homeowners in the city. The city sends out 700 property tax bills annually.
No ending date for the collection of the wheel tax was set, although the council agreed to review the tax annually during the budget process.
The Wisconsin Department of Motor Vehicles will be responsible for collecting the tax and will forward the revenue to the city every quarter.
Several residents at the public meeting opposed the wheel tax, saying people don’t want another tax. Alderman Terry Nelson responded by saying the revenue will help the city move forward and complete necessary street work.
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