As fleet-wide energy efficiency increases, Wisconsin must strive to wean itself off its over-reliance on the fuel tax per gallon and look for other ways to pay for road maintenance and modernization. Wisconsin should work to abolish the fuel tax while reducing the cost of the fuel pump. The state can recover lost revenues through a sales tax increase. A few cents more on the chocolate bar at the supermarket is a small price to pay for a significant drop at the pump and long-term funding stability that keeps pace with inflation. A more practical and easier method to implement would be to replace the gas tax with a slight increase in the state sales tax. The gap between Wisconsin and neighboring states is only expected to widen as the value of vehicles increases and vehicles become more fuel efficient. In addition to the gas tax, the state legislature imposes an annual registration fee on vehicle owners. A handful of cities and counties, including Chippewa County, impose additional wheel taxes on vehicles registered there. Registration fees are considered by many to be penalties because owners of fully electric vehicles are charged more. While the stated goal is to compensate for the loss of fuel tax revenue, this amounts to an ongoing effort by state lawmakers to discourage people from buying electric vehicles.
While modern, fully automated toll roads would be a great solution for securing funding for the maintenance of the state`s largest highways, they are politically a non-departure in the state due to long-standing prejudices against them. According to the Wisconsin Department of Transportation, a typical Wisconsin driver can expect to pay $342 a year between fuel taxes and registration fees, of which $247 is fuel taxes. In comparison, a typical Minnesota driver pays $809 a year, while a Michigan driver pays $475 a year in fuel fees and taxes. Wisconsin imposes a tax of 30.9 cents on every gallon of gasoline sold in the state. This money is the main source of revenue to finance road projects at the state level. In addition, a portion of the gas tax will be used for other transportation projects, including the development of ATV trails and snowmobiles. Regardless of the vehicle that drives, there are ongoing costs for the maintenance of the state`s road network. According to the Tax Foundation, a nonpartisan resident of Wisconsin, the average Wisconsin resident pays about $1,000 a year in sales taxes, or about 1.88 percent of average tax income.
Payment due: Payment is due 15 days after the end of the month One of the challenges of Wisconsin`s gas tax is that it requires a law of the Legislature to make inflationary adjustments. In the meantime, VAT is constantly evolving according to the price of goods and services. Since virtually all goods and services had to be transported on Wisconsin roads to reach consumers, it makes more sense to link road maintenance to a legal sales tax increase. Taxation: Initial sale unless sold to another Wisconsin general aviation fuel licensee or an aviation company. Reporting Penalties: Late Filing Fee – $10 [Section 78.68(2), Wis. Statistics.]. Default interest — 1.5% per month [Article 78.68(2), Wis. Statistics.]. Late submission penalty — 5% per month, maximum 25% [Article 78.68 (4), Wis. Statistics.] .
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