Vehicle Registration Fee

Background

On Tuesday, September 17, the City Council adopted an ordinance implementing a municipal vehicle registration fee for vehicles in the amount of $30. The fee will be collected by the state along with the annual vehicle registration and will be allocated to a designated fund specifically for transportation-related purposes. Implementation of the fee will generate a steady revenue stream for road maintenance, infrastructure improvements, and other transportation projects to enhance Sun Prairie’s quality of life, reducing reliance on property tax revenue. It will take effect on February 1, 2025.

Committee of the Whole Presentation 

Kathleen McDaniel , City Attorney, presented details of the vehicle registration fee during the Committee of the Whole. Check out the video below to see the presentation. 

 

FAQs

Below are frequently asked questions about the fee and the implementation process. For a fuller list, please click here. 

What is a municipal vehicle registration fee?

The municipal vehicle registration fee has been allowed in Wisconsin since 1967 under Wis. Stat. § 314.35, which allows a town, village, city or county to collect an annual vehicle registration fee (or wheel tax) in addition to the regular annual registration fee paid for:

· Autocycles

· Automobiles

· Trucks at 8,000 lbs. or less (except dual purpose farm)

The Wisconsin Department of Transportation will begin collecting the fee with each vehicle registration in Sun Prairie beginning on February 1, 2025.

When will the municipal vehicle registration fee go into effect? How much is it?

Vehicles with registration that expires in February 2025 or any vehicles registered on or after February 1, 2025 will pay a $30 fee.

What is the estimated revenue collection?

With a $30 fee, the estimated annual revenue collected is $955,000.

What can the municipal vehicle registration fee be used for?

Revenues collected from the municipal vehicle registration fee may only be used for transportation related purposes, such as maintenance and repair of roads, paths and trails, pedestrian safety improvements, lights/signals/signs, traffic markings, and landscaped medians and roundabouts. Collected fees cannot be used or transferred for other governmental purposes and are not subject to levy limits.

What vehicles are exempt from a municipal vehicle registration fee?

The following vehicles are exempt from a municipal registration fee:

· Buses, motorcycles, mopeds, motor homes, low-speed vehicles and trailers.

· Trucks registered at more than 8,000 pounds.

· Farm or Dual Purpose Farm trucks

· Antique, Collector, Driver education, Historic military vehicle, Hobbyist, Human service vehicle, Low-speed vehicle, Medal of honor, Municipal, State-owned, Special X and one vehicle with Ex-prisoner of war registration issued to any qualified individual.

· Any vehicle with registration issued by a Wisconsin Indian tribe or band.

· Vehicles displaying Dealer, Distributor, Finance company or Manufacturer plates.

Do electric and hybrid vehicles pay a municipal vehicle registration fee?

Yes, unless they meet one of the exemptions listed above.