Wheel Tax FAQs

Q: What is a wheel tax?

A: A wheel tax is a fee paid at the time of annual registration of a vehicle (when you purchase your annual tabs) or at the time you initially purchase a vehicle. The tax only applies to vehicles registered in the City limits of the City of Hudson.

 

Q: What vehicles are exempt from a wheel tax?

A: Examples of vehicles that are exempt from wheel taxes include buses, motorcycles, mopeds, motor homes, trucks over 8,000 pounds, vehicles with certain special license plates, government vehicles, and dealer vehicles, among others.

 

Q: What are typical amounts charged for a wheel tax? How much funding would that provide the City?

A: Wheel taxes generally range between $10 and $40 per vehicle annually, although there is technically no cap to the amount that could be charged. If adopted, the City’s wheel tax would likely be around $20-25 per vehicle per year, but that amount could change based on the decision made by the City Council. Assuming a $20 per vehicle per year wheel tax, the City would raise about $350,000 on an annual basis. Unfortunately, that amount is not sufficient to fully fund the City’s infrastructure maintenance needs, but it can be used to supplement and diversify funding of infrastructure maintenance.

 

Q: Do other communities in Wisconsin have a wheel tax? 

A: Yes, as of the time of the creation of this document 29 municipalities and 13 counties in the state of Wisconsin have adopted a wheel tax. St Croix County is one of the counties that currently has a wheel tax ($10 per vehicle per year). The closest municipality that has a wheel tax adopted is the City of Rice Lake. If the City adopted a wheel tax, it would be added to the wheel tax that St Croix County charges instead of replacing it.